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Informist, Wednesday, Jul. 22, 2026

 

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--Sona BLW to transfer electric vehicle ops to arm Sona Comstar eDrive
--Sona BLW to transfer EV ops to Sona Comstar eDrive via slump sale
--Sona BLW to transfer EV ops to Sona Comstar eDrive for INR 8.93 bln
--DENSO to buy 49% stake in Sona eDrive at INR 17.50 bln enterprise value
--Sona BLW to hold 51% stake of Sona eDrive post DENSO stake buy
--DENSO Corp, Sona BLW to form new JV to make parts of 4-wheeler EVs, hybrids

 

MUMBAI – Sona BLW Precision Forgings Ltd. and Japan's Denso Corp. have joined hands to establish two joint ventures to develop, design, manufacture, and market advanced electric and hybrid powertrain systems across multiple vehicle segments, the company said in an exchange filing Wednesday. While one venture will focus on high-voltage liquid-cooled tractor inverters and traction motors for electric and hybrid four-wheelers, the other will focus on air-cooled traction inverters and e-axles for electric and hybrid two-wheelers and three-wheelers.

 

To bring these ventures to fruition, the board of Sona BLW approved carving out and transferring its electric vehicle business through a slump sale to wholly-owned subsidiary Sona Comstar eDrive Pvt. Ltd. for INR 8.93 billion. This deal includes a cash consideration of INR 8.58 billion to be paid under a business transfer agreement, while the balance will be transferred through equity shares. 

 

Subsequently, Denso will purchase 49% equity shares in Sona eDrive at an enterprise value of INR 17.50 billion. The remaining 51% stake in Sona eDrive will be held by Sona BLW.

 

The two firms will set up another joint venture focused on electric and hybrid powertrain systems for two- and three-wheelers. Denso would invest up to INR 535 million for a 51% stake while Sona BLW will invest up to INR 262.15 million for the remaining stake. 

 

"This partnership aims to expand product offerings through accelerated innovation and create opportunities to serve a broader customer base. Both DENSO and Sona Comstar shall license intellectual property and know-how to their respective majority owned joint ventures against payment of royalty," Sona BLW said. 

 

For the March quarter, on a consolidated basis, the company had reported net profit of INR 1.92 billion on revenues of INR 12.72 billion. Wednesday, its shares closed 0.9% lower at INR 726.50 on the National Stock Exchange.  End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

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