Atul Auto Limited announced that its Board of Directors, in a meeting held on January 15, 2026, approved the acquisition of the L5 Electric Three-Wheeler Vehicle Business from its subsidiary, Atul Greentech Private Limited (AGPL). The acquisition will be conducted as a going concern through a slump sale.

The L5 Vehicle Division of AGPL is involved in the manufacturing and sales of L5 category electric three-wheelers, including components like batteries, Battery Management Systems (BMS), chargers, telematics, and powertrains. This business also has a global presence, with sales in countries such as Belgium, France, Italy, South Africa, Peru, and the Philippines.

The acquisition is considered a related party transaction as Atul Auto Limited holds 79.39% of AGPL. However, the company has obtained a valuation report from an IBBI registered valuer, and the transaction is expected to be at arm's length. Shri Pratik Kedia, Executive Director of AGPL, is a relative of Shri Vijay Kedia, a Non-Executive Director at Atul Auto Limited. Shri Vijay Kedia holds 19.72% of AGPL, and other promoter group relatives hold approximately 0.25%.

The acquisition is strategically aligned with Atul Auto's existing business and is anticipated to generate significant synergy benefits. These include integration of operations, marketing, and dealership networks, leading to reduced overall costs and improved operational efficiency. The move will also enable existing dealers of conventional vehicles to sell L5 electric three-wheelers, ensuring business continuity and profitability, and strengthening after-sales service and spare parts management.

The consideration for the business transfer is ₹3526 Lakhs, payable in cash. The acquisition is expected to be completed within 15 days from the approval by the audit committee and the board of directors.

Financials for the L5 Vehicle Division of AGPL for the last three years are as follows: FY2024-25 saw a turnover of ₹6227 Lakhs for L5 Vehicles and ₹6410 Lakhs total turnover for AGPL, with a loss of ₹1593 Lakhs. In FY2023-24, L5 Vehicle turnover was ₹1412 Lakhs, total turnover was ₹1434 Lakhs, and the loss was ₹957 Lakhs. In FY2022-23, L5 Vehicle turnover was ₹33 Lakhs, total turnover was ₹33 Lakhs, with a loss of ₹437 Lakhs.