The Board of Directors of Bharat Gears Limited, in its meeting, has deliberated and subject to the approval of the shareholders at the ensuing annual general meeting, approved the acquisition of equity shares constituting 100% of the equity paid-up capital of Xlerate Driveline India Limited, a group company of the Company.

Raunaq EPC International Limited (REIL), the Seller Company and Xlerate Driveline lndia Limited (XDIL), the Target Company are related parties of the Company. The Transaction is being done at the arms' length basis. Xlerate Dnveline lndia Limited, incorporated on 25 October, 1995 under the Companies Act, 1956 is into business of manufacluring and trading of Automotive clutches and has an established presence in the OEMs/OES of the clutch business in lndia and Abroad.

The acquisition will be EPS accretive in the consolidated financial statements and the acquisition will the Company give an established set up for a clutch manufacturing capacity which is adequate for the future projected growth of the Company. Since the products of both the Companies are complementary in nature, the acquisition would bring cost efficiency in certain areas and provide scope for improvement in operational synergies of auto components business.