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  • News
  • By Team Kalkine
  • Nov 20, 2025

JK Tyre (NSE:JKTYRE ) Subsidiary Sells Cavendish Industries Stake for ₹130.64 Crore

JK Tyre (NSE:JKTYRE ) Subsidiary Sells Cavendish Industries Stake for ₹130.64 Crore

Source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • JK Tornel to sell 40 lakh shares of Cavendish Industries Ltd. for ₹130.64 crore.
  • Shares are being purchased by Bengal & Assam Company Ltd (6 lakh) and J.K. Fenner (India) Ltd (34 lakh).
  • The transaction is classified as a related party transaction and is executed at arm’s length.

JK Tyre & Industries Ltd (NSE:JKTYRE) has announced that its subsidiary, JK Tornel, has entered into agreements to sell 40 lakh equity shares of Cavendish Industries Ltd., another subsidiary of the company, to promoter-related entities. The transaction involves promoter entities Bengal & Assam Company Ltd acquiring 6,00,000 shares and J.K. Fenner (India) Ltd acquiring 34,00,000 shares. The total consideration for the sale amounts to ₹130.64 crore. Despite the sale, Cavendish Industries Ltd will continue as a subsidiary under the JK Tyre group.

Transaction Details and Regulatory Compliance

The sale falls under related party transactions and has been conducted at arm’s length terms. JK Tyre has ensured that all disclosures comply with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with SEBI Circular No. SEBI/HO/CFD/POD2/CIR/P/0155 dated 11th November 2024. The transaction is not part of any scheme of arrangement and is expected to conclude by 30th November 2025.

Financial Contribution of Cavendish Industries

Cavendish Industries contributed ₹3,990.85 crore to JK Tyre’s consolidated income and had a net worth of ₹1,064.23 crore in the last financial year. This accounted for 27.02% of the company’s consolidated income and 21.94% of its net worth. The divestment of shares by JK Tornel is strategic and maintains regulatory compliance while allowing promoter group entities to increase their stake.

About the Buyers

The buyers in the transaction are Bengal & Assam Company Ltd, a promoter entity of JK Tyre, and J.K. Fenner (India) Ltd, part of the promoter group. This ensures that the transaction remains within the promoter ecosystem while following arm’s length principles, avoiding conflicts of interest.

Completion Timeline and Future Outlook

The sale of equity shares is expected to be completed by 30th November 2025. JK Tyre has clarified that the divestment will not affect Cavendish Industries’ status as a subsidiary. 

JKTYRE sahres were trading at ₹445.05 per share during trading session on 20 November 2025.

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