Execution of Joint Venture Agreement between Quantum Magnetics Private Limited (Wholly owned Subsidiary of Permanent Magnets Limited) and Lorentic Pte Ltd.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Permanent Magnets Ltd announced on August 28, 2025 that its wholly owned subsidiary Quantum Magnetics Pvt Ltd (QMPL) has signed a Joint Venture Agreement with Lorentic Pte Ltd. The JV will focus on manufacturing, marketing, and distribution of neodymium magnets and related magnetic assemblies, along with R&D collaboration for advanced magnetic products. The shareholding structure will be 49.02% Lorentic, 49.02% PML, and 1.96% reserved for ESOP, giving both partners equal board representation and decision-making power. QMPL, which had a turnover of Rs 5.51 crore in FY25, will cease to be a wholly owned subsidiary once shares are allotted to Lorentic. The transaction is classified as a related party deal and is being done at arm's length.
For shareholders, this JV opens international market access and stronger R&D capabilities for the magnet business, potentially boosting long-term growth. The dilution of PML's stake in QMPL from 100% to 49.02% means future profits from the subsidiary will be shared, but the equal partnership structure suggests strategic value outweighs the loss of full control.