Atul Auto Acquires L5 Electric Vehicle Business for Rs 35.26 Cr
Filing Summary
Atul Auto Ltd has approved the acquisition of the L5 Electric Three-Wheeler Vehicle Business from its subsidiary, Atul Greentech Private Limited (AGPL), for Rs 35.26 Cr. The acquisition will be executed as a slump sale, with the transaction expected to complete within 15 days following board approval. This acquisition aligns with Atul Auto’s existing business operations and involves no share swaps. The L5 Vehicle Division of AGPL, which operates globally, will integrate into Atul Auto’s operations, enhancing its electric vehicle production and distribution capabilities.
Atul Auto Ltd has announced the acquisition of the L5 Electric Three-Wheeler Vehicle Business from its subsidiary, Atul Greentech Private Limited (AGPL). The acquisition, approved by the Board of Directors on January 15, 2026, involves the transfer of the business as a going concern through a slump sale. This strategic move is part of Atul Auto’s efforts to expand its electric vehicle segment.
The financial terms of the acquisition specify a cash consideration of Rs.3526 Lacs. No share swaps or additional equity transactions are involved in this acquisition. The transaction is structured as an arm’s length deal, with a valuation report obtained from an IBBI registered valuer to ensure fair market value. Atul Auto holds a 79.39% stake in AGPL, while Shri Vijay Kedia, a Non-Executive Director of Atul Auto, holds 19.72% of AGPL shares.
The scope of the acquisition includes the manufacturing and sales operations of L5 category electric three-wheelers, along with associated components such as batteries, Battery Management Systems (BMS), chargers, telematics, and powertrains. The L5 Vehicle Division of AGPL has a global presence, with sales in countries including Belgium, France, Italy, South Africa, Peru, and the Philippines. The integration of this division is expected to enhance Atul Auto’s operational efficiency and expand its dealership network for electric vehicles.
AGPL’s L5 Vehicle Division has reported turnovers of Rs.6227 Lacs, Rs.1412 Lacs, and Rs.33 Lacs for the financial years 2024-25, 2023-24, and 2022-23, respectively. The acquisition aligns with Atul Auto’s existing business operations, aiming to create a seamless ecosystem for electric vehicle production and distribution. The transaction will allow AGPL to focus more on its battery manufacturing business by reallocating resources effectively.
The acquisition is expected to be completed within 15 days from the approval by the audit committee and board of directors. This timeline ensures a swift transition and integration of the L5 Vehicle Division into Atul Auto’s existing operations.
Atul Greentech Private Limited, a subsidiary of Atul Auto, specializes in the manufacturing and sales of electric three-wheelers and related components. The company focuses on expanding its battery manufacturing capabilities following the hiving off of its L5 Vehicle Division.
Atul Auto Ltd is a prominent player in the automotive industry, focusing on the production and distribution of three-wheeler vehicles. The company is strategically enhancing its electric vehicle portfolio to align with market trends and regulatory requirements, aiming to strengthen its position in the electric mobility sector.