
NRB Industrial Bearings Limited (NIBL) announced the approval of an inter-company agreement with NRB Bearings Limited, a related party, during its board meeting on January 20, 2025. The agreement, subject to shareholder approval, involves a consideration of ₹55.12 crore and aims to regulate property rights, intellectual property usage, and non-solicitation provisions.
Key Highlights:
- Purpose of Agreement:
- Release of rights to use the Dhannur Office, located at Sir P.M. Road, Fort, Mumbai.
- Governance of intellectual property rights usage.
- Mutual non-solicitation of employees between the companies.
- Transaction Details:
- Consideration Amount: ₹55.12 crore, payable by NRB Bearings Limited.
- Terms: Subject to shareholder approval and receipt of the specified consideration amount.
- Intellectual Property Clause:
- Upon a change in control of NRB Industrial Bearings, rights to use trademarks such as “NRB Industrial” will revert to NRB Bearings.
- Arm’s Length Basis:
- The related-party transaction has been executed on an arm’s length basis, ensuring fairness in terms.
- Promoter Group Relationship:
- Both entities belong to the same promoter group, emphasizing a structured approach to shared operational interests.
The agreement reinforces strategic alignment between the two companies and streamlines operations through well-defined terms for property and intellectual property usage. This move aims to create operational clarity and support future growth for both entities.
Disclaimer: The above information is based on regulatory filings by NRB Industrial Bearings Limited and is intended for informational purposes only.