Shares of Rane Holdings Ltd. gained close to 3% on Wednesday, August 20, trading at ₹1,514.45 on the BSE, after the company announced a fresh investment in its wholly owned subsidiary, Rane Steering Systems Private Limited (RSSL).
In a regulatory filing, Rane Holdings informed that RSSL allotted 20,00,000 equity shares of ₹10 each on a rights basis, fully subscribed by the parent. The investment, valued at ₹50 crore, was made at an issue price of ₹250 per share (including a premium of ₹240).
Despite the fresh infusion, Rane Holdings’ shareholding in RSSL remains unchanged at 100%. The company clarified that the transaction was carried out at arm’s length, with pricing based on a registered valuer’s report.
Why the investment?
According to the filing, the proceeds will be used by RSSL to meet operational and capital expenditure requirements and to pursue further growth opportunities.
RSSL, incorporated in 1995, manufactures steering columns and reported a turnover of ₹1,706.33 crore in FY25. Over the past three years, it has shown steady growth with turnover of ₹1,510.34 crore in FY23 and ₹1,718.73 crore in FY24.
Market reaction
The announcement boosted investor sentiment, with shares climbing nearly 3% in early trade. Analysts say the fresh capital infusion strengthens RSSL’s balance sheet and positions it well for expansion in the auto component sector.