Syrma SGS will hold a 60 per cent stake in the joint venture company (JVCo), and the rest will be held by the Indian arm of Japanese firm Kaga Electronics.
“We would like to inform you that the company has executed an agreement with Kaga Electronics India Private Limited (Kaga) to establish, develop and operate a technologically advanced, state-of-the-art EMS manufacturing facility together in India focusing on Japanese clients,” the filing said.
Pursuant to the proposed transaction, Syrma SGS will invest Rs 15 crore in the JVCo, and Kaga will invest Rs 10 crore.
“The issuance of further shares shall be undertaken at the fair market value, which shall be determined as per the terms of the agreement in accordance with a valuation report as per applicable laws,” the filing said.