Sansera Engineering Jumps 2% After JV With Nichidai

Shares of Sansera Engineering Ltd rose 2% to touch a day’s high of Rs 1,707.30 on 29th January. This came after the company said it has entered into a joint venture agreement with Japan-based Nichidai Corporation to manufacture precision auto components.

The joint venture will manufacture precision-forged and machined aluminium and steel components for differential assemblies, compressors, driveline systems, and other advanced automotive parts. Sansera does not currently make these components. However, it will sell them in both the Indian and overseas markets, the company said.

The JV will be set up by incorporating a new company in Bengaluru, India, to carry out the business. Sansera will hold a 60% stake, while Japan’s Nichidai Corporation will own the remaining 40%.

The proposed authorised equity share capital of the JV is Rs 2 crore. There will be an initial paid-up capital of Rs 2 lakh, subject to further fund infusion in multiple tranches.

The board of the JV company will consist of 7 directors, with 4 nominated by Sansera and 3 by Nichidai. Sansera will appoint the managing director.

As part of the agreement, Nichidai will exclusively supply tooling for the JV’s India operations and provide technical know-how, designs, specifications, and manufacturing process support. This is subject to certain exceptions.

At 3:15 PM, shares of Sansera Engineering were trading 1.30% higher at Rs 1,692.50 on NSE.

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