PPAP Automotive Limited has entered into a settlement agreement with Tokai Kogyo Co. Ltd and PPAP Tokai India Rubber Private Limited (PTI) for the sale of its entire 50% equity stake in PTI to Tokai Kogyo.
The agreement was executed on January 7, 2026, with an effective date of January 1, 2026. The transaction is expected to be completed by February 28, 2026, subject to customary closing conditions.
PTI is a joint venture between PPAP Automotive and Tokai Kogyo. As per the company’s disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, PTI did not contribute any turnover to PPAP Automotive in the last financial year. However, the joint venture had a net worth of ₹35.96 crore, accounting for 12.49% of PPAP Automotive’s consolidated net worth. PPAP Automotive will receive a consideration of ₹100 crore from Tokai Kogyo for the sale of its stake.
Tokai Kogyo Co. Ltd, the buyer, is incorporated under the laws of Japan and is headquartered at Obu City, Aichi Prefecture. The company is the existing joint venture partner in PTI and does not belong to PPAP Automotive’s promoter or promoter group. The transaction marks PPAP Automotive’s complete exit from the joint venture with Tokai Kogyo.