Auto company foray into the green and alternate fuels segment through strategic agreement to acquire majority stake in Greenfuel Energy Solutions
The company has a market cap of Rs 3,886 crore and stock is up by 70 per cent from its 52-week low of Rs 334.50 per share.
Lumax Auto Technologies Limited, a leading Tier-1 automotive systems and components supplier, has signed an agreement to acquire a majority stake in Greenfuel Energy Solutions Private Limited from its existing shareholders. The proposed acquisition will be LATL’s entry into the green and alternate fuels segment (across CNG, hydrogen and other applications) which is expected to witness strong and accelerated growth in the coming years.
Greenfuel is a prominent supplier of (1) high-pressure fuel delivery and storage systems (including related components and sub-systems) primarily for CNG and hydrogen automobiles and (2) fire and smoke alarm, detection and suppression systems (including related components and sub-systems) for the automotive industry. It is a supplier to key OEMs including Maruti Suzuki, TATA Motors and Volvo Eicher Commercial Vehicles. Greenfuel has established strong technology collaborations, providing a competitive advantage in delivering industry-leading solutions to customers. Greenfuel currently also has other ancillary businesses which will be carved out and will not form a part of the proposed acquisition.
The proposed partnership with Greenfuel offers LATL the opportunity to expand and diversify its solutions to automotive OEMs in India. Lumax and Greenfuel’s management team will collaborate as strategic partners and leverage their respective competitive strengths to unlock the potential of the Business in the coming years and together, strive to position Greenfuel as an industry leader for systems and components in the ‘alternate fuels’ segment.
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About Lumax Auto Technologies Limited
Lumax Auto Technologies Ltd. together with its subsidiaries, has been a manufacturer of a wide range of products. We are market leaders in the design, testing and manufacturing of gear shifters and interior solutions in India. The Company has a robust pan‐India distribution network with 26 manufacturing plants across India in all major automotive clusters. Our key customers include Bajaj Auto, Honda Motorcycles and Scooters, Mahindra & Mahindra, Maruti Suzuki, Tata Motors and Toyota. F
On Monday, shares of LATL gained 9.51 per cent to Rs 570.20 per share with an intraday high of Rs 574.40 and an intraday low of Rs 549.65 from its previous closing of Rs 520.70. The company's shares saw a spurt in volume by more than 3.30 times on BSE. The company has a market cap of Rs 3,886 crore and stock is up by 70 per cent from its 52-week low of Rs 334.50 per share. Investors should keep an eye on this auto stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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