Setco Automotive Finalizes Divestment of Subsidiary, Receives ₹215 Crore
Setco Automotive Limited finalized the divestment of its subsidiary, Setco Auto Systems Private Limited, to RSB Transmissions (I) Limited. The final purchase consideration is ₹215 Crore. ₹207.6 Crore was paid on closing, with ₹7.4 Crore released from the holdback on July 29, 2026. The remaining ₹2.6 Crore was adjusted.
The divestment of a material subsidiary and receipt of a significant sum of ₹215 Crore will impact the company's financial structure and potentially its future strategic direction.
The company has successfully closed a divestment transaction, receiving the final purchase consideration which is higher than the initially estimated amount.
Setco Automotive Limited has provided an update on the divestment of its majority stake in its material subsidiary, Setco Auto Systems Private Limited (SASPL), to RSB Transmissions (I) Limited. The transaction, initially announced on March 29, 2026, with an expected initial purchase consideration of approximately ₹185 Crore, has now seen its closure confirmed on May 28, 2026.
Following the finalization of closing accounts and determination of net debt and working capital as of the Closing Date, the final purchase consideration has been established at ₹215 Crore. This amount was paid in tranches: ₹207.6 Crore was paid on the Closing Date, with a Holdback Amount of ₹10 Crore retained. Subsequently, on July 29, 2026, ₹7.4 Crore of the Holdback Amount was released to the Company. The remaining ₹2.6 Crore of the Holdback Amount has been adjusted against a downward adjustment to the purchase consideration due to differences in estimated versus final net debt and working capital figures for SASPL.
It is noted that this Final Purchase Consideration does not include any separately disclosed deferred consideration, which remains payable as per the Share Purchase and Subscription Agreement (SPSA).
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Setco Automotive Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Setco Automotive Limited. Read the original for the full detail.