Main Disclosure – Disinvestment Details
Target Entity: Isgec SFW Boilers Private Limited (JV Company)
Percentage Stake Disinvested: 25% stake reduction (from 51% to 26%)
Post-Transaction Holding: 26% equity stake
Counterparty/Buyer: Sumitomo SHI FW Energia Oy (joint venture partner)
Mode of Consideration: Cash consideration of Rs. 4 crores (Rupees Four crores only)
Valuation or Price Basis: Not explicitly disclosed in the document
Rationale for Disinvestment: Strategic realignment of joint venture structure
Impact on the Company:
- JV company ceased to be a subsidiary and became an associate company
- The JV will continue as a joint venture between ISGEC and Sumitomo SHI FW Energia Oy
- Reduction in controlling interest from majority to minority stake
Business Profile of Target Entity:
- Sector: Boilers manufacturing (joint venture company)
- Financial contribution to ISGEC Consolidated FY 2024-25:
- Turnover: Rs. 11,86,88,400 (0.18% of consolidated turnover)
- Net Worth: Rs. 8,30,13,080 (0.29% of consolidated net worth)
Related Party Status: No - The buyer, Sumitomo SHI FW Energia Oy, is a joint venture partner and does not belong to the Promoter/group companies of the listed entity
Approvals Required: Not mentioned in the document
Indicative Timeline:
- Agreement Date: May 08, 2026
- Expected Completion Date: June 30, 2026
- Actual Completion Date: June 25, 2026 (completed ahead of schedule)
Other Updates
No other disclosures are present in the document.