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Lumax Auto acquires majority stake in Greenfuel Energy; stock flies 9%
Source: Business Standard
The uptick in the share price came after the company announced the acquisition of a majority stake in Greenfuel Energy Solutions Private Limited (Greenfuel) from its existing shareholders.
This acquisition marks LATL’s strategic entry into the green and alternative fuels sector, which includes CNG and hydrogen technologies. The company’s move is seen as part of its long-term growth strategy to forge strategic partnerships with industry leaders.
“This is another step in our long-term growth strategy of strategic partnerships with industry leaders. With the CNG vehicle market expected to witness strong growth, specifically in the passenger vehicle segment, we will look to leverage this platform to deliver high quality solutions to our customers and be an industry leader for systems and components in the ‘alternate fuels’ segment,” said Deepak Jain, promoter director of LATL.
The partnership with Greenfuel will enable LATL to broaden its offerings to automotive OEMs in India. Both companies plan to work closely to utilise their combined strengths and drive innovation in the green fuels sector. Greenfuel will continue its operations under the leadership of Akshay Kashyap, its founder and CEO.
Akshay Kashyap, founder and CEO of Greenfuel said, “We are excited about this strategic partnership with LATL which merges their extensive market reach and strong customer base with our core competence in alternate fuel systems. The collaboration is expected to unlock tremendous value for both stakeholders and drive innovation in the automotive sector, leading to a shift towards cleaner and more sustainable mobility solutions.”
Greenfuel specialises in high-pressure fuel delivery and storage systems for CNG and hydrogen vehicles, as well as fire and smoke detection systems for the automotive industry. It supplies major original equipment manufacturers (OEMs) like Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles. Some of Greenfuel’s ancillary businesses will be excluded from the acquisition.
Lumax Auto revealed that the closure of the transaction is subject to completion of customary conditions precedent.
KPMG Corporate Finance and Grant Thornton served as exclusive advisors to LATL and Greenfuel, respectively.
Lumax Auto Technologies Ltd., along with its subsidiaries, is among the leading manufacturers of automotive components in India.
The company operates 26 manufacturing plants across major automotive hubs and serves key customers including Bajaj Auto, Honda Motorcycles and Scooters, Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Toyota.
At 12:12 PM, shares of Lumax Auto were trading 6.94 per cent higher at Rs 556.85 per share. In comparison, BSE Sensex was trading 0.02 per cent lower at 82,876.87 levels.
First Published: Sep 16 2024 | 12:16 PM IST
