The board of Rico Auto Industries approved transfer of the company's investments held in three subsidiary firms to Rico Investments, another unit of the auto component manufacturing firm.
The company's board has approved sale and transfer of investments in RAA Autocom, Rasa Autocom and Rico Jinfei Wheels to another subsidiary firm Rico Investments, which has been incorporated for the purpose of holding investment in the group companies as a core investment company, Rico Auto Industries said in a filing to the BSE.
"Rico Investments shall have a strategic partner which would initially hold up to 10 percent of the share capital of Rico Investments Ltd," it added.
The shares of the three companies are proposed to be sold for a aggregate consideration of around Rs 1.5 crore determined on the basis of valuation report, it said.
In another transaction, the company has sold its Ferrous based auto component division located at Gurgaon and Manesar and non ferrous based auto component business located at Sanand in Gujarat to RAA Autocom.
"The lump sum consideration for ferrous and non ferrous undertakings is Rs 39.59 crore and Rs 4.81 crore," the company said.
Rico Auto Industries' shares ended at 47.35 apiece on the BSE, down 2.97 per cent from their previous close.
Source : http://economictimes.indiatimes.com/