Sona BLW Precision Forgings Approves EV Business Sale to Subsidiary and New Joint Venture with DENSO

Sona BLW Precision Forgings Approves EV Business Sale to Subsidiary and New Joint Venture with DENSO​

Sona BLW Precision Forgings Limited announced key decisions made by its Board of Directors concerning strategic business developments, including the sale of its Electric Vehicle (EV) segment and the formation of a new joint venture with Japanese automotive giant DENSO Corporation. The company also approved changes to its Audit Committee composition.

The board meeting, held on July 22, 2026, addressed several critical matters designed to expand the company's footprint in the electric mobility sector.

EV Business Carve-Out and Transfer​

Sona BLW Precision Forgings Limited approved a slump sale of its Electric Vehicle (EV) business to Sona Comstar eDrive Private Limited (Sona eDrive), which is a wholly owned subsidiary of the Company. The transfer will be executed on a going concern basis.

The EV Business, described as covering the development, design, manufacture, sale, and marketing of air-cooled traction motors and generators, traction inverters, eAxles, and related products for 2 and 3-wheeler electric and hybrid systems, is set to be transferred to Sona eDrive. The transaction is scheduled for completion on or before March 31, 2027.

The aggregate consideration for the transfer amounts to INR 8,932 million (Indian Rupees Eight Billion Nine Hundred Thirty-Two Million). This payment structure includes:

• A cash consideration of INR 8,575 million (Indian Rupees Eight Billion Five Hundred Seventy-Five Million).
• The balance consideration amount in equity shares to be issued by Sona eDrive to the Company.

Post-transferring this business unit into JV1, a Share Subscription Agreement (SSA) was entered into with DENSO and Sona eDrive. Under this agreement, DENSO will acquire 49% equity shares in Sona eDrive at an enterprises value of INR 17,500 million, making the Company hold 51% shareholding in JV1 after the investment.

Details regarding the EV Business prior to sale are summarized below:

Joint Venture with DENSO for Quadricycle Powertrains​

The Board also approved the execution of a Joint Venture Agreement (JVA) and Joint Development Agreement (JDA) with DENSO Corporation, Japan to establish a joint venture company (JV2) in India. This venture aims to focus on products related to 4-wheeler and more than 4-wheeler applications for electric and hybrid systems.

The JV2 will undertake the development, design, manufacture, sale, and marketing of liquid-cooled traction motors-generators, traction inverters, and related technologies, excluding eAxles and gears. The company and DENSO are jointly investing funds aggregating to INR 535 million into JV2. Upon incorporation, DENSO is slated to hold 51% of the paid-up equity share capital of JV2, while Sona BLW Precision Forgings Limited will hold the remaining 49%, based on an investment of INR 262.15 million.

Audit Committee Re-constitution​

In a governance update, the Board of Directors approved the re-constitution of the Audit Committee by inducting Mrs. Priya Sachdev Kapur (Non-Executive and Non-Independent Director) as a Member.

The newly reconstituted Audit Committee comprises the following members:

SONACOMS Stock Price Movement​

Sona BLW Precision Forgings Limited shares slipped on Wednesday, settling at ₹726.50 after shedding ₹8.45, translating to a 1.15% decrease. Despite the dip, the equity had previously surged to achieve its 52-week high and traded amidst substantial interest with 2.08 million shares passing through during the session.