Varroc Engineering Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company-Update on _Regulation 30_Settlement of the Proceedings_Receipt of Consideration
VARROC · price
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Varroc Engineering has informed exchanges that its wholly owned Dutch subsidiary, VarrocCorp Holding B.V., has received RMB 310.5 million (less withholding tax) from Beste Motors Co. Ltd. as full consideration for transferring its 50% stake in Varroc TYC Corporation (BVI), thereby exiting its Chinese auto-lamp joint ventures in Changzhou and Chongqing. This follows an ICC Singapore arbitration award in December 2024 in Varroc's favour over breaches by the JV partner, and an enforcement order by the Eastern Caribbean Supreme Court (BVI) dated April 17, 2025 directing the transfer and payment within 28 days. Varroc was also reimbursed the costs of the enforcement proceedings. The company confirms the enforcement proceedings are now fully completed with no pending claims.
This is a positive, closure event for shareholders — Varroc has successfully monetised a troubled JV exit, recovered approximately ₹360–370 crore (after withholding tax), and eliminated an ongoing international dispute. The cash inflow strengthens the balance sheet and removes uncertainty around the Chinese JV exposure, though the quantum is modest relative to the company's overall size.