Sona BLW Precision Forgings Ltd has revised its business transfer agreement (BTA) with Escorts Kubota, moving up the expected completion date for acquiring the Railway Equipment Division (RED) from September 2025 to May 1, 2025. The company’s board approved the amendments during a meeting on February 10, 2025, according to a regulatory filing.
Transaction Terms and Payment Structure
The revised agreement includes changes in the timeline for obtaining necessary business-related registrations and adjustments to payment terms. As part of the deal, ₹1,600 crore of the total transaction amount will be held in escrow and released in phases upon meeting specified milestones.
Industrial Land Acquisition in Faridabad
In addition to the BTA revision, Sona BLW’s board has approved the purchase of a 33,423-square-yard industrial plot in Sector 24, Faridabad, from Escorts Kubota for ₹110 crore. The site, currently used for spare parts operations by Escorts Kubota, is located adjacent to the RED business facility. Escorts Kubota plans to relocate its spare parts operations before the land transfer is finalized.
Share Performance
As of February 11, 2025, at 2:15 PM, shares of Sona BLW Precision Forgings Ltd were trading at ₹509.90 per share, reflecting a 2.92% decline from the previous day’s closing price. Over the past month, the stock has recorded a 9.18% decrease.