“Gearing Up for Growth—JTEKT India Rolls Out ₹2.5B Rights Issue

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On July 15, 2025, the Board of Directors of JTEKT India Ltd. approved a proposal to raise up to ₹2.5 billion through a rights issue of equity shares. The fundraising initiative is aimed at bolstering the company’s financial position, supporting expansion plans, and enhancing shareholder value.

Key Details of the Rights Issue

Total Amount: Up to ₹2.5 billion
Mode: Rights issue of equity shares and/or other permissible securities
Purpose: Strengthen working capital
Fund growth initiatives: Reduce debt and improve liquidity
Next Steps: Subject to shareholder and regulatory approvals, including SEBI and stock exchanges

Market Context & Financial Snapshot

JTEKT India’s share price closed at ₹147.00 on July 10, up 5.70% from the previous session
The company reported FY25 revenue of ₹2,409 crore and PAT of ₹75.26 crore, with a net profit margin of 3.13%
Promoter holding stands at 74.98%, with a low debt-to-equity ratio of 0.13, indicating financial resilience

About JTEKT India Ltd.

A subsidiary of JTEKT Corporation, Japan, the company manufactures steering systems, bearings, and driveline components
Key clients include Maruti Suzuki, Toyota, Honda, Tata Motors, and Mahindra & Mahindra
Operates multiple manufacturing facilities across India, serving both automotive and industrial sectors

Sources: Economic Times, Business Standard, BlinkX, HDFC Sky, Moneycontrol