PPAP Automotive Limited has informed the Exchange regarding a press release dated February 13, 2026, titled "Press Release".
PPAP · price
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Awaiting price reaction for this filing.
PPAP Automotive has sold its entire 50% stake in its joint venture PPAP Tokai India Rubber Private Limited (PTI) to its partner Tokai Kogyo Co. Ltd. for a cash consideration of Rs. 100 crores. The JV, incorporated in 2012 as a 50:50 partnership for manufacturing EPDM rubber components, was described by the Chairman as not having been fruitful over the years. PPAP had originally invested Rs. 48.5 crores in the JV, meaning the sale delivers a gain of about Rs. 51.5 crores. Post-exit, the company has no further obligations towards PTI and plans to start in-house EPDM rubber sealing system production at its Chennai facility from April 2026. Proceeds will be used to reduce net debt and fund planned strategic capital expenditure.
Short-term positive: unlocks Rs. 100 cr of cash at roughly 2x the original investment, strengthens the balance sheet via debt reduction, and frees management bandwidth. Medium-term, the company is betting on bringing EPDM rubber production in-house at Chennai, which could improve margins but carries execution risk.