Board of Subros approves stake sale to Denso

Subros Limited will issues 52.5 lakh equity shares of the company on a preferential basis to Denso Corporation, Japan. Denso will now hold 20 per cent stake in the company.

In August 9, 2018, the company's board had given in-principle approval for issue of 52,47,150 equity shares. The issue price is Rs. 400 per equity share of face value Rs. 2 each.

Subros plans to extend its technical collaboration with Denso to remain competitive in the Indian market. Access to technical know-how will help the company comply with environmental regulations and also achieve global quality standards.

Subros Limited engages in the manufacture of compressors, condensers, heat exchangers and connecting parts for air conditioning loop. The company mainly serves the automotive sector. Subros has manufacturing facilities in Noida, Manesar, Pune, Chennai and Sanand.

At 15:25 hours, the stock of Subros was trading in negative territory at Rs. 319.00 per share, down by 6.26 per cent on Thursday. The benchmark index BSE Sensex was at 36,340.75, down by 201.52 or 0.55 per cent, while the Nifty50 was at 10,973.20, down by 80.60 or 0.73 per cent.