Setco Automotive Sells Stake in SASPL for ₹185 Crore, Renames to Shilayan Industries
Setco Automotive will sell 41% of SASPL for ₹185 Crore and remaining 24% for up to ₹255 Crore. The company will be renamed Shilayan Industries Limited. A non-compete agreement will yield ₹70 Crore. India Resurgence Fund's debentures in SASPL will be redeemed for ₹97.6 Crore.
The sale of a material subsidiary, a significant cash inflow, and a corporate name change represent a substantial strategic shift for the company, indicating a high impact.
The sale of a subsidiary and the associated restructuring, including a name change and significant cash inflow, are positive developments for the company.
Setco Automotive Limited has approved the sale of approximately 41% stake in its material subsidiary, Setco Auto Systems Private Limited (SASPL), to RSB Transmissions (I) Limited for approximately ₹185 Crores. The sale, executed via a Share Subscription and Purchase Agreement on March 29, 2026, is subject to adjustments based on SASPL's net debt and working capital on the closing date. Additionally, Setco Automotive will sell its remaining 24% stake in SASPL in FY 2027-28 for up to ₹255 Crores, contingent on EBITDA-linked milestones.
As part of the transaction, Setco Automotive and its promoter group have entered into a non-compete agreement with RSB Transmissions, for which Setco will receive ₹70 Crores. Consequently, Setco Automotive Limited will change its corporate name to Shilayan Industries Limited, subject to regulatory approvals. The company also approved a change in its registered office and objects clause.
The Board meeting, held on March 28, 2026, also approved the redemption of non-convertible debentures held by India Resurgence Fund in SASPL for ₹97.6 Crores. Lava Cast Private Limited, a wholly-owned subsidiary of Setco, will continue to be owned by the company and will enter into a Supply Agreement with SASPL for reserving production capacity, for which LCPL will receive ₹33 Crores.
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Setco Automotive Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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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.