Lumax Auto Technologies Limited has informed the Exchange regarding Outcome of the Board Meeting held on May 16, 2025
LUMAXTECH · price
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On the reaction day the stock moved 3.4 pts more than Nifty Microcap 250 and 3.9 pts more than its Auto Components & Equipments peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Lumax Auto Technologies' board, meeting on May 16, 2025, approved buying the remaining 25% stake in its subsidiary IAC International Automotive India (IAC India) from IACG Holdings LUX SARL for approximately INR 221 crores in cash. Post-acquisition, IAC India will become a wholly owned material subsidiary of Lumax. IAC India is a Tier-1 supplier of interior systems and components to major OEMs including Mahindra, Maruti Suzuki, Volkswagen and Volvo Eicher, with FY24 revenue of INR 886 crores (up from INR 801 crores in FY23 and INR 468 crores in FY22). The transaction is expected to close by May 31, 2025, subject to customary conditions. No regulatory approvals are required, and the deal is being done at arm's length, though promoters Deepak Jain and Anmol Jain sit on IAC India's board.
This is a value-accretive move giving Lumax full control of a fast-growing subsidiary with strong OEM relationships, but the ~INR 221 crore cash outflow is a meaningful deployment. Investors should watch for margin consolidation benefits and whether the deal triggers any open-offer obligation for minority shareholders of the listed entity.