PPAP Automotive Limited has entered into a settlement agreement to sell its entire 50 percent equity stake in PPAP Tokai India Rubber Private Limited to its joint venture partner Tokai Kogyo Co. Ltd. The agreement was executed on 7 January 2026, with the transaction expected to be completed by 28 February 2026.
The company said in a stock exchange filing that the effective date of the agreement is 1 January 2026 and that the consideration for the sale of the stake has been fixed at INR 100 million. Following completion, PPAP Tokai India Rubber will no longer be classified as a joint venture of PPAP Automotive.
PPAP Tokai India Rubber did not contribute any turnover to PPAP Automotive in the last financial year. However, the joint venture accounted for a net worth contribution of INR 35.96 million, representing 12.49 percent of the listed entity’s consolidated net worth for the period.
The settlement agreement marks a restructuring of the relationship between PPAP Automotive and Tokai, which had jointly operated the rubber components business through PPAP Tokai India Rubber.
PPAP Automotive Limited is an India-based manufacturer of automotive sealing systems and interior and exterior automotive parts, supplying components to passenger vehicle and commercial vehicle manufacturers. The company is listed on the BSE Limited and the National Stock Exchange of India Limited.
