Lumax Auto Technologies to acquire majority stake in Greenfuel Energy Solutions; stock zooms 9%

On September 14, Lumax Auto Technologies filed a filing with the exchanges stating that it had entered into an agreement to acquire a majority stake in Greenfuel Energy Solutions.

Greenfuel Energy Solutions is a supplier of high-pressure fuel delivery and storage systems, including related components and subsystems, for Compressed Natural Gas (CNG) and hydrogen-powered automobiles.

The company also supplies fire and smoke detection and suppression systems for the automotive industry. It is a supplier to key Original Equipment Manufacturers (OEMs) such as Maruti Suzuki, TATA Motors, Volvo, and Eicher Commercial Vehicles, among others.

The company informed the bourses that Greenfuel has other ancillary businesses, which will be carved out and will not form a part of the proposed acquisition. Lumax Auto Technologies also said that the proposed partnership offers it an opportunity to expand and diversify the range of solutions it provides to automotive OEMs.

As per the agreement, the two companies' management teams will collaborate as strategic partners. Greenfuel Energy’s day-to-day operations will continue to be managed by the company’s founder and CEO, Akshay Kashyap, and the existing professional management team.

Lumax Auto Technologies shares have rallied more than 52% in the past one year. The stock has given Year-To-Date (YTD) returns of more than 43%, while rising over 21% in the past six months. In the past one month the stock has gained nearly 4%.

Lumax Auto Technologies shares traded at ₹553 apiece, up 6.23%, on the NSE, at 10:05 am.