Rane Holdings Ltd (RHL), the holding company of Rane group, has decided to sell its 45.26 per cent stake in its associate firm SasMos HET Technologies Ltd (SasMos).
Rane and the promoters of SasMos are in discussion to conclude the terms of the sale, according to a company statement.
The company did not disclose the reason behind the move to divest the stake in SasMos.
SasMos’s revenues grew 40 per cent to ₹79 crore in 2015-16 from ₹57 crore in 2014-15.
The company said the decision was approved by the RHL’s board of directors at their meeting held on Thursday, considering various factors to streamline and consolidate investments in the automotive, aerospace and defence sectors in alignment with the vision of Rane Group.
As part of its plans to diversify into aerospace & defence space, RHL acquired 26 per cent stake in Bengaluru-based SasMos, a manufacturer of wiring harnesses and electrical interconnection systems for aerospace, defence and marine industry in August 2011.
It increased the stake to 45.26 per cent in November 2014.
“SasMos has been a rewarding investment and the group will continue to seek out investment opportunities in the aerospace sector,” said L Ganesh, Chairman, Rane Group.
Posts ₹58-cr net
RHL posted strong performance in Q2 of this fiscal. Its net profit stood at ₹57.5 crore compared with ₹10.1 crore in Q2 FY-16.
Net profit for Q2 of this fiscal was boosted by an exceptional income of ₹93.9 crore due to sale of remaining portion of Alandur land of Rane Engine Valve Ltd.