Shares of Lumax Auto Technologies Ltd soared 6% on Wednesday 27 November after the company announced their venture into the green and alternate fuels market by acquiring a 60% stake in Greenfuel Energy Solutions for a total consideration of Rs 153 crore. 

The acquisition will be executed through the wholly-owned subsidiary of the company, Lumax Resources and will be funded through debt and internal accruals. 

Greenfuel focuses on high-pressure fuel storage and delivery systems for Compressed Natural Gas (CNG) and hydrogen-powered vehicles, along with fire and smoke suppression solutions for the automotive industry. Its clientele includes prominent OEMs like Maruti Suzuki, Tata Motors, and Volvo Eicher Commercial Vehicles.

Under the continued leadership of Akshay Kashyap, Managing Director and CEO, Greenfuel will maintain its operations. Lumax Auto and Greenfuel received advisory support from KPMG Corporate Finance and Grant Thornton, respectively, with legal assistance from Cyril Amarchand Mangaldas.

In an exchange filing, Kashyap said, “We are excited about this strategic partnership with Lumax Auto, combining their extensive market presence and strong customer relationships along with our expertise in alternate fuel systems. This collaboration is poised to deliver significant value for all stakeholders while fostering innovation in the automotive industry and advancing the transition to cleaner, more sustainable mobility solutions.”

Anmol Jain, the Managing Director of Lumax Auto, said, “This partnership enables us to expand our product portfolio for key OEMs while increasing our per-vehicle content in the four-wheeler segment.”

At 3:30 pm, the shares of Lumax Auto closed 1.32% higher at Rs 519.55 on NSE.

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!