Syrma SGS Technology and Kaga Electronics Partner to Establish Advanced EMS Manufacturing Facility in India
Syrma SGS Technology Limited has entered into an agreement with Kaga Electronics India Private Limited to establish, develop, and operate a state-of-the-art Electronic Manufacturing Services (EMS) facility in India. This joint venture is specifically aimed at serving Japanese clients within the advanced technology sector.Under the proposed transaction, Syrma SGS Technology Limited will take an aggregate ownership stake of up to 60% in the Joint Venture Company (JVCo). Kaga Electronics India Private Limited will hold a corresponding equity stake of up to 40%. The establishment of this facility is intended to create a technologically advanced manufacturing hub.
The agreement outlines several significant terms governing the partnership. The Board of Directors of the JVCo will consist of four directors: two nominated by Syrma SGS Technology Limited and two nominated by Kaga Electronics India Private Limited.
Key contractual provisions include share transfer rights and restrictions, such as a right of first refusal for either party if the other party transfers any equity shares. Additionally, the agreement details reserved matters for both Syrma and Kaga, along with provisions concerning future funding opportunities for the JVCo.
Financial commitments under the Proposed Transaction are structured as follows:
| Party | Investment Commitment |
|---|---|
| Syrma SGS Technology Limited | Approximately INR 15 Cr |
| Kaga Electronics India Private Limited | INR 10 Cr |
The joint venture is not a related party transaction. The issuance of equity shares in the JVCo will be undertaken based on these committed investments, with further share issues scheduled to occur at the fair market value as determined by a valuation report prepared according to applicable laws.
SYRMA Stock Price Movement
Today, Syrma SGS Technology Limited’s shares edged higher to settle at ₹1338, closing after trading activity concluded this afternoon. The stock saw considerable interest during the session, with 619,576 shares traded while it maintained a tight intraday range between ₹1328.5 and ₹1357.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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