JK Tyre & Industries Limited has informed the Exchange about Acquisition
JKTYRE · price
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JK Tyre & Industries' board has approved an investment of Rs. 1.22 Crore to acquire a 26% equity stake in STTY RE Ltd, a newly incorporated (8th March 2025) solar power company. The move is aimed at setting up a 5 MWp Solar Power Project under the Captive Power Route, with the entire project cost of around Rs. 15.59 Crore being funded by STTY. The promoter group of JK Tyre already holds the remaining 74% in STTY, making this a related party transaction done at arm's length with audit committee approval. Post-acquisition, STTY will become an associate company of JK Tyre and supply solar power to the company at competitive rates for 25 years. The deal is expected to be completed by 31st October 2025.
The investment is small (Rs. 1.22 Crore) and unlikely to move the stock, but it secures long-term (25-year) low-cost solar power for JK Tyre's manufacturing operations, supporting cost savings and sustainability goals. No open offer is triggered as the acquisition is in an unlisted associate entity.