RICOAUTONSERico Auto Industries Limited· Auto AncillariesHighPositive
Announced Tue, 1 Apr · 15:18 IST

Rico Auto Industries Limited has informed the Exchange regarding 'Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015'.

Listed Co AcquisitionStrategic Transactions View source PDF

RICOAUTO · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Rico Auto Industries is buying 13,05,688 equity shares (26% stake) in Boond Renewable Energy Private Limited (BREPL), a solar power generator, for Rs.10 per share in cash — a total of about Rs.1.3 Crore. The purpose is to secure uninterrupted and cost-effective solar power supply for the company's operations. The acquisition is not a related-party transaction and is expected to close in 3-6 months. Separately, the Board has approved a capital expenditure of up to Rs.75 Crores for plant, machinery, and utilities at a new Greenfield facility in Hosur (Tamil Nadu) during FY 2025-26. The Hosur plant will manufacture auto components aimed at South-based automotive OEMs, on 12.31 acres of leased land allotted earlier in May 2024.

Likely market impact

For shareholders, the BREPL stake is a small strategic investment to lower long-term power costs and support sustainability, not a major financial bet. The Rs.75 Crore Hosur CapEx is a more meaningful commitment, signalling expansion into southern India to serve regional auto customers, which could support future revenue growth but will also raise capex outflows in FY26.