Sona comstar share price: Automotive Original Equipment Manufacture (OEM) Sona BLW Precision forgings Ltd. (Sona Comstar) has made a big announcement. The company made China’s Jinnaete Machinery Co. Ltd. (JNT) is created with a joint venture (JV).
With this joint venture, Sona COMSTAR will be able to target China and international markets to supply the system and components. Due to this, Sona Comstar shares will be in focus on Monday, July 21.
Board approves JV
The Board of Directors of Sona Comstar has approved the formation of this JV directly or through its full -ridden subsidiary. Its operation will start from the second half of FY 2025-26. Initially its aim will be to complete the existing orders of electric (EV) and non-EV customers.
Stake sharing
According to the agreement, Sona Costar will invest $ 12 million in this JV and keep 60% equity steak with it. JNT will take a 40% stake by bringing assets of $ 8 million and business operations. JV’s day-to-day management will be in the hands of China’s JNT, but the control will be with Sona Comstar.
What did the management say?
“This partnership is strategically important for us. It will help us to make a strong presence in Asia’s high-civil auto market.”
What is the strength of JNT?
Hubei-based Jinnaete Machinery operates Advance Foundry, where complex castings and molds are made with the help of patent technology. The company supplies OEM customers of China, North America, Europe and Auto, Off-Haiway, Aviation, Railways and Marine Sector of sector.
Both companies will benefit
Through this joint venture, the accurate engineering capabilities of Sona Comstar and the construction of China’s JNT will come together and reach the local market. Its purpose is to meet the growing global demand of driven components.
Next step legal documentation
Sona Comstar said that the board of directors has approved the binding term sheet agreed between the two sides. At the same time, officers have also been allowed to finalize all legal documents including shareholders agreement.
Sona Comstar shares
Sona Comstar’s shares closed at Rs 480.05 on Friday, July 18 at Rs 480.05. This stock has come down 32.20% in the last 1 year. This year i.e. in 2025 also the company has given negative returns of 18.86%. The market cap of Sona Comstar is 29.84 thousand crores.
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