Wheels India Limited has informed the Exchange about Acquisition
WHEELS · price
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Wheels India Limited's Board has approved buying 7,64,533 equity shares of Axles India Limited from Forge 2000 Private Limited for Rs. 22.68 Crores (Rs. 296.65 per share). This will increase Wheels India's holding in Axles India from 9.51% to 12.51%. Axles India manufactures axle housings for medium and heavy commercial vehicles and reported revenue of Rs. 847 Crores in FY25. The transaction is a related party deal, as Forge 2000 is a wholly owned subsidiary of Sundaram Finance Holdings, which is a promoter of Wheels India. The acquisition is expected to complete on or before 31st August 2025 and has been approved by the Audit Committee as an arm's length transaction.
This is a small, incremental stake increase (3%) in an existing associate company within Wheels India's core business of commercial vehicle components. While it strengthens Wheels India's strategic interest in Axles India, the size of the deal is modest relative to both companies and unlikely to materially impact the stock price. The related party nature and promoter connection warrant standard governance scrutiny but pose no red flags given audit committee approval.