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Setco Automotive Limited ( (IN:SETCO) ) has provided an update.
Setco Automotive’s board has approved a series of transactions under which it will sell its 41% stake in its material subsidiary Setco Auto Systems to RSB Transmissions for about INR 185 crore, with price adjustments and additional deferred consideration linked to EBITDA milestones. A shareholders’ agreement also provides for the sale of the remaining 24% stake via options by FY 2027-28 for up to INR 255 crore, while voting rights on these residual shares will effectively pass to the buyer from closing.
The parties have signed a non-compete agreement under which Setco and its promoters will exit competing businesses for three years in exchange for INR 70 crore in non-compete fees, and the company and its promoters will cease using the “Setco” brand. Reflecting this divestment and brand transition, the board has approved changing the corporate name to Shilayan Industries Limited, shifting the registered office, and altering the objects clause in its charter, subject to shareholder approval at an extraordinary general meeting on April 25, 2026.
More about Setco Automotive Limited
Setco Automotive Limited operates in the automotive components industry through its material subsidiary Setco Auto Systems Private Limited (SASPL), which focuses on transmission-related products and systems. The company serves domestic and possibly international vehicle and component markets, and is now preparing to rebrand as Shilayan Industries Limited as it reshapes its business portfolio and strategic direction.
Average Trading Volume: 13,963
Technical Sentiment Signal: Buy
Current Market Cap: 2.46B INR
Find detailed analytics on SETCO stock on TipRanks’ Stock Analysis page.