Lumax Auto forms JV with German firm

The company has signed a joint venture with Jopp Holding, Germany for production and sale of auto components. Reacting to the development, the stock of Lumax Auto Technologies was up more than 2 per cent in the morning session.

As per the terms of the agreement entered between Lumax Auto Technologies Limited (LATL) and JOPP Holding GmBH, Germany (JOPP), the two company will have a 50:50 holding of the total equity share capital of the proposed Joint Venture (JV) Company. The JV will have five Directors on the Board, three will be LATL Directors and two JOPP Directors. One of the LATL Directors will be the Managing Director.

The JV will engage in the manufacture and sale of the automotive components including Shift Tower (manual and automated), Shift Forks and all gear sensor assembly.

On Friday, the stock of Lumax Auto opened at Rs. 141.00 per share and hit an intraday high of Rs. 142.50 and an intraday low of Rs. 136.10 per share. At 10:10 hours, the stock was trading at Rs. 138.50, up by Rs. 2.95 or 2.18 per cent on BSE.