JTEKT India Limited completed a rights issue of 2,31,16,407 fully paid-up equity shares at an issue price of ₹108.10 per share, aggregating to ~₹249.89 crore. The rights entitlement was 1 equity share for every 11 fully paid-up equity shares held. The record date was July 25, 2025; the issue window ran August 4–12, 2025, with on-market renunciation through August 7, 2025 and off-market renunciation through August 11, 2025.
Use of Proceeds: funding for a new production facility in Gujarat, capex for the Dharuhera (Haryana) plant, and repayment of certain borrowings. Promoters — JTEKT Corporation, JTEKT Column Systems Corporation and Maruti Suzuki India Limited — subscribed 100% to their entitlements. Systematix Corporate Services Limited acted as advisor and underwriter.
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Parties Involved
Issuer: JTEKT India Limited
Promoters: JTEKT Corporation; JTEKT Column Systems Corporation; Maruti Suzuki India Limited
Advisor & Underwriter: Systematix Corporate Services Limited
Legal Advisors & Deal Teams
Saraf and Partners — Issuer Counsel
Mandate: Comprehensive advisory on the rights issue, including due diligence, drafting and negotiation of transaction documents, and regulatory support through filing and closing.
Deal Team:
Mathew Thomas, Partner (Lead)
Key Transaction Highlights
Issue Size & Terms: ~₹249.89 crore via 2,31,16,407 shares at ₹108.10; 1:11 entitlement.
Timeline: Record date July 25, 2025; issue period August 4–12, 2025; renunciation cut-offs Aug 7 (on-market) / Aug 11 (off-market).
Backstop/Underwriting: Underwriting arrangement with Systematix Corporate Services Limited as per the Draft Letter of Offer.
Promoter Commitment: Full subscription to promoter entitlements, signalling confidence in the company’s medium-term growth plan.
Strategic Significance
Capacity expansion & localization: The Gujarat greenfield build-out alongside Dharuhera capex supports capacity, localization and technological upgrades across steering systems and related components—key to OEM demand and platform refresh cycles. Rights proceeds earmarked for capex and deleveraging should strengthen the balance sheet and provide flexibility for future investments.
Shareholder-friendly structure: A rights issue enables existing shareholders to maintain proportionate ownership while funding growth, often at lower issuance costs and with clearer price discovery compared to alternative routes.
Supply-chain resilience: With OEMs emphasizing domestic value addition, incremental capex in Gujarat and Haryana bolsters domestic manufacturing depth and responsiveness to platform-specific demand.
Why It Matters
Auto components upswing: The transaction reflects continued capex across India’s automotive supply chain as OEMs accelerate launches in PV and UV segments and prepare for xEV platforms.
Signal from promoters: 100% subscription of rights entitlements by promoters typically conveys confidence in operational execution and medium-term earnings visibility.
Capital markets trend: Rights issues remain a practical route for listed industrials to finance targeted capex while minimizing ownership disruption.
About the Company
JTEKT India Limited is a listed automotive component manufacturer engaged in steering systems, bearings, drivelines and electronic accessories, supplying to leading OEMs in India.
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Disclaimer
This article is for informational purposes only and does not constitute legal or financial advice. Readers should consult professionals before making decisions.
