SETCONSESetco Automotive LimitedMediumNeutral
Announced Mon, 23 Mar · 15:56 IST

Setco Automotive Limited has informed the Exchange regarding Outcome of Board Meeting held on March 23, 2026.

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SETCO · price

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Price reaction · full curve 14 horizons · vs prior close
+10.8%1-day move
₹16.30
prior close
₹17.20
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AI summary

The Board of Setco Automotive has approved a draft Scheme of Amalgamation to merge its wholly-owned subsidiary Lava Cast Private Limited (LCPL) into itself, under Sections 230–232 of the Companies Act, 2013. LCPL makes non-ferrous metal casting components for commercial and passenger vehicles, while Setco makes clutches, hydraulics, and related auto components. Since LCPL is fully owned by Setco, no new shares will be issued and no cash consideration will change hands, so there is no change in Setco's shareholding pattern. The merger is subject to NCLT, shareholder, creditor, and other regulatory approvals. LCPL had a turnover of Rs. 8,737.90 lakhs but a negative net worth of Rs. -10,256.69 lakhs as of March 31, 2025, indicating it is a loss-making unit being absorbed.

Likely market impact

This is a routine internal restructuring that simplifies the group structure and cuts compliance costs; existing shareholders are unaffected as no new shares are issued and the shareholding pattern remains unchanged.