Sona BLW Precision Forgings (SONACOMS) — Board Meeting

📢 Key Event
Board approved EV business carve-out to JV with DENSO and formation of two JVs for EV and powertrain systems.

🔄 What Changed
Approval of EV business transfer via slump sale to Sona eDrive and creation of two joint ventures with DENSO for EV and hybrid powertrain systems.

🔮 What's Next
Transaction completion subject to customary conditions precedent, statutory approvals, and closure by March 31, 2027, unless extended.

💡 Investor Takeaway
The transactions reconfigure the company's EV strategy through partnerships with DENSO, potentially unlocking growth in electric two/three-wheelers and four-wheelers while maintaining majority control in the new ventures.

Sona BLW Precision Forgings Limited announced on July 22, 2026, that its board approved the carve-out and transfer of its electric vehicle business to a newly formed joint venture with DENSO Corporation, Japan, involving an aggregate consideration of ₹8,932 million, comprising ₹8,575 million in cash and equity shares. The EV business, contributing INR 3,855 million in turnover and INR 3,471 million in net worth in FY25-26, will be transferred via slump sale to Sona Comstar eDrive Private Limited, a wholly owned subsidiary. Concurrently, the company entered a share subscription agreement with DENSO to acquire a 49% stake in the JV at an enterprise value of ₹17,500 million, resulting in a 51:49 ownership split between the company and DENSO. Additionally, a separate joint venture (JV2) will be established with DENSO to develop liquid-cooled traction systems for four-wheelers, with DENSO holding 51% and the company 49% (INR 262.15 million investment). The board also reconstituted the Audit Committee by appointing Mrs. Priya Sachdev Kapur as a member.

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