Atul Auto Limited Amplifies EV Market Presence with Major Investment
An exclusive report from our sources confirms that Atul Auto Limited, an established name in the automobile industry, will infuse INR 19.99 crore into Atul Greentech Private Limited (AGPL) – its subsidiary. The ambitious move is part of Atul’s strategic plan to cement its position in the electric vehicle (EV) industry.
The Investment
On March 6, 2024, Atul Auto Limited announced their big investment into AGPL through the subscription of equity shares. The automobile stalwart, through this investment, will retain an 80% stake in AGPL, thereby maintaining its existing shareholding percentage.
About Atul Greentech Private Limited (AGPL)
Launched on January 28, 2020, AGPL’s business operations mainly revolve around the production of electric three-wheelers, as well as the provision of key EV components such as battery packs and chargers. Its focus is primarily on the L5 Category of electric vehicles that are produced by Atul Auto Limited itself.
Even though the transaction is classified as a related party under the appropriate regulations, it is handled at arm’s length and neutral of any vested benefits from either the promoters or group companies, without the inclusion of Atul Auto Limited. With this step, Atul Auto’s overall investment in AGPL rises to INR 29.99 crore, underlining the company’s intent to leverage the rapidly growing EV market effectively.
AGPL’s Fiscal Standing
As per the financial records available for the year ending on March 31, 2023, AGPL’s paid-up share capital stood at INR 12.5 crore, while its turnover was INR 80 lakh. The company had a net worth of INR 20.21 crore and reported a post-tax loss of INR 4.37 crore for the fiscal year 22-23. This investment by Atul Auto is expected to boost AGPL’s financial stability while simultaneously accelerating EV production in the future.
Conclusion
Atul Auto’s significant investment in its subsidiary underscores the company’s commitment to making strides in the EV industry. The company’s decision to bolster its investment in AGPL is a clear illustration of its strategy to lead the charge in the promising and rapidly evolving EV sphere.
- Atul Auto Limited holds an 80% stake in AGPL.
- AGPL focuses on producing electric three-wheelers and supplying core EV components.
- The new investment has increased Atul Auto’s total contribution in AGPL to INR 29.99 crore.
- AGPL reported a net worth of INR 20.21 crore and a post-tax loss of INR 4.37 crore as of 2023.
- This investment will solidify Atul Auto’s position in the expanding EV market.
