Setco Automotive to Divest SASPL Stake, Rebrand as Shilayan Industries

Setco Automotive Limited ( (IN:SETCO) ) has provided an update.

Setco Automotive’s board has approved a series of transaction documents under which it will sell a 41% stake, or 447,847 shares, in its material subsidiary Setco Auto Systems Private Limited to RSB Transmissions (I) Limited for about ₹185 crore, subject to closing adjustments and potential deferred consideration linked to EBITDA milestones. A shareholders’ agreement also provides for the sale of the remaining 24% stake via call and put options, targeted in FY 2027–28, for up to ₹255 crore based on performance parameters, while voting rights on these residual shares will shift to the buyer from closing.

As part of the transaction, Setco Automotive and its promoter group have entered into a three-year non-compete agreement for ₹70 crore and agreed to cease using the “Setco” brand name, prompting a planned change of the corporate name to Shilayan Industries Limited, relocation of the registered office, and modification of the company’s objects clause. These moves, contingent on shareholder approval at an extraordinary general meeting on April 25, 2026, mark a significant divestment and strategic reset that could materially alter the company’s business profile and future direction.

More about Setco Automotive Limited

Setco Automotive Limited operates in the automotive components industry, primarily through its material subsidiary Setco Auto Systems Private Limited, which focuses on transmission-related products. The company is now preparing to rebrand as Shilayan Industries Limited and alter its business objects, signaling a strategic repositioning beyond its legacy “Setco” brand and current operational footprint.

Average Trading Volume: 13,963

Technical Sentiment Signal: Buy

Current Market Cap: 2.46B INR

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