Lumax Auto Technologies Ltd. announced on Friday that it will acquire the remaining 25% stake in IAC International Automotive India Pvt., or IAC India, for Rs 221 crore. Following the completion of the transaction, IAC India will become a wholly-owned material subsidiary of the company.
"This company's board have approved the proposed acquisition by the company of remaining 25% shareholding in IAC International Automotive India Private Ltd., or IAC India from its existing shareholder, subject to completion of customary conditions in terms of a share purchase agreement amongst the company," according to an exchange filing.
Currently, Lumax Auto holds a 75% stake in IAC India, with the remaining 25% held by IAC Lux. The acquisition is expected to be completed by May 31, 2025, subject to the fulfilment of customary conditions precedent outlined in the Share Purchase Agreement, it added.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
'One Can Never Get Good News And Bad Share Price': S Naren, ICICI Pru Life AMC On NDTV Profit Ignite
Despite the change in ownership, "there will be no alteration in the day-to-day operations, business activities, or management of IAC India", as per the filing. Furthermore, the IAC Group will continue to extend its technology support to IAC India even after the transaction.
Incorporated in March 2008 in Maharashtra, IAC India is a Tier-1 interior systems and components supplier to key automotive OEMs in India including Mahindra, Maruti Suzuki, Volkswagen and Volvo Eicher Commercial Vehicles, among others.
"It also has a strong and well-established engineering center providing advanced design and engineering services to customers in India and overseas which provides it a competitive advantage," Lumax Auto said.
Before the disclosure to exchanges, shares of Lumax Auto closed 0.05% lower at Rs 620.2 apiece on the NSE, compared to 0.17% decline in the benchmark NSE Nifty 50. The company's stock has risen 30.13% in the last 12 months and fallen 3.90% on a year-to-date basis.
Four analysts tracking Lumax Auto have a 'buy' rating on its stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 25.7%.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.