Lumax Auto Tech Acquires Remaining IAC India Stake

New Delhi, May 18 (PTI) Lumax Auto Technologies Ltd will acquire the remaining 25 per cent stake in IAC International Automotive India Pvt Ltd from the International Automotive Components Group for Rs 221 crore, according to a regulatory filing by the company.

The company has signed an agreement to acquire the remaining 25 per cent stake and IAC Group will continue to support IAC India through a technology support agreement, Lumax Auto Technologies Ltd (LATL) said in a statement on Sunday.

"Equity value for 25 per cent interest in IAC India is approximately Rs 221 crore," the filing said.

Lumax had earlier acquired a 75 per cent stake in IAC India in March 2023.

The closure of the latest transaction is subject to completion of customary conditions precedent and is expected by May 31, 2025 after which IAC India will become a wholly-owned subsidiary of LATL.

The company further said it will explore the possibility of merging IAC India with Lumax in accordance with legal and regulatory requirements to unlock further synergies between the two companies.

"The consolidation will strengthen our strategic vision and enable future growth, building on the strong foundation to drive continuity, performance, and scalability," Lumax Group Chairman Deepak Jain said.

This development marks a significant milestone in the group's journey towards long-term value creation and providing comprehensive solutions across lighting, plastics, and interiors," he added.

"It also reinforces its strategic position within IAC India and expands our footprint on major electric vehicle platforms of leading OEMs such as Mahindra & Mahindra, emphasising our commitment to the future of sustainable mobility," Jain said.

IAC India has five manufacturing plants across the country, including two in Chakan, Pune and one each in Manesar, Nashik and Bangalore.

It also has an in-house engineering centre in Pune with key capabilities in product designing and engineering, dimensional engineering, product development, programme management and tooling development, the statement said.

The engineering centre has a team of 330 engineers and designers with global experience catering to all tool development requirements from customers as well as from its global sister concerns, it added.