Jost's Engineering Company Limited has announced the completion of its strategic divestment of JECL Engineering Limited, marking a significant corporate restructuring move. The company successfully transferred its entire 100% shareholding in the material subsidiary to Mr. Rahul Dhoot on March 24, 2026.

Transaction Timeline and Approvals

The divestment process began with the company's initial announcement on February 5, 2026, when it approved the sale of its complete shareholding in JECL Engineering Limited. The company also approved various draft agreements including the Share Purchase Agreement and other definitive documents such as the Brand Assignment Agreement, Trademark License Agreement, and Transition Services Agreement.

The transaction required and received shareholder approval through a postal ballot process completed on March 11, 2026, demonstrating proper corporate governance procedures.

Transaction Structure and Completion

The sale was structured through a comprehensive Share Purchase Agreement with Mr. Rahul Dhoot as the acquirer. The transaction included multiple supporting agreements to ensure smooth transition of operations and intellectual property rights.

The company confirmed that it has received the agreed consideration amount after making necessary adjustments and deducting the holdback amount as per the transaction terms.

Corporate Impact

With the completion of this transaction, JECL Engineering Limited has officially ceased to be a subsidiary of Jost's Engineering Company Limited. The cessation became effective from the end of business day on March 24, 2026, representing a complete divestment of the company's interest in this material subsidiary.

This strategic move represents a significant change in the company's corporate structure and business portfolio, as JECL Engineering Limited was classified as a material subsidiary prior to the transaction.

Jost's Engineering Company Limited has announced significant strategic decisions following its Board of Directors meeting held on March 24, 2026, including the divestment of a joint venture stake, incorporation of a new subsidiary, and leadership transition in the Chief Financial Officer position.

Strategic Divestment and Joint Venture Exit

The board has approved the divestment of 50% equity investment in its joint venture, Suryavayu Renewable and Energy Solutions Private Limited (SRESPL), to Kay Cee Energy & Infra Limited at a fair market value of ₹4.124 per share. Following this transaction, SRESPL will cease to be a joint venture of the company.

Kay Cee Energy & Infra Limited is a company incorporated under the Companies Act, 1956, engaged in power transmission and distribution infrastructure business. The buyer does not belong to the promoter/promoter group/group companies, making this a non-related party transaction.

New Subsidiary Incorporation

The board has approved the incorporation of a wholly owned subsidiary in India to leverage future growth opportunities in the engineered products and service business. The proposed subsidiary will operate under the name Josts Techno Solutions Private Limited or Josts Tech Services Private Limited, subject to Ministry of Corporate Affairs approval.

CFO Leadership Transition

The board acknowledged the resignation of Mr. Pranesh Bhandari from his position as Chief Financial Officer and Key Managerial Personnel, effective March 31, 2026, due to personal reasons. Simultaneously, the board approved the appointment of Mr. K C Somani as the new Chief Financial Officer, effective April 1, 2026.

Mr. K C Somani is a qualified Chartered Accountant from the Institute of Chartered Accountants of India with extensive experience in financial planning, budgeting, accounts, and internal controls. The appointment was made based on recommendations from the Nomination and Remuneration Committee and Audit Committee.

Regulatory Compliance and Authorization

The company has updated its authorized officials for determining materiality of events and making disclosures to stock exchanges, effective April 1, 2026. The board meeting was conducted from 7:30 p.m. to 8:22 p.m. on March 24, 2026, with all decisions made in compliance with SEBI Listing Regulations.

All transactions have been structured to comply with regulatory requirements, with the divestment being conducted outside any scheme of arrangement and the subsidiary incorporation requiring standard Ministry of Corporate Affairs approvals.