Cummins India Limited — Important, 07-02-2025: Sale or disposal

The Board of Directors of Cummins India Limited has approved the sale of its 100% stake in subsidiary Cummins Sales & Service Private Limited (CSSPL) to PAL SVAM Power Solutions Private Limited for a total consideration of INR 56.5 Cr. This transaction, formalized through a Share Purchase Agreement, is expected to be completed by April 1, 2025. CSSPL contributed approximately 2.21% to the company’s revenue and 0.54% to its net worth in the last financial year. Following the completion of the sale, CSSPL will no longer be a wholly-owned subsidiary of Cummins India. This divestiture may provide the company with liquidity and refocus resources on its core business segments, presenting a positive outlook for strategic realignment. Investors should monitor any further developments regarding resource allocation following this transaction.