Atul Auto to Acquire E3W Business from Subsidiary in Strategic Consolidation Move

Rajkot-based Atul Auto Limited announced on January 15, 2026, that its Board of Directors has approved the acquisition of the L5 Electric Three-Wheeler Vehicle Business from Atul Greentech Private Limited (AGPL), a subsidiary company in which Atul Auto holds a 79.39% stake.

The transaction, valued at Rs 3,526 lakh (approximately Rs 35.26 crore), will be executed as a slump sale on a going concern basis. The acquisition is expected to be completed within 15 days of receiving approval from the audit committee and board of directors.

According to the disclosure made to BSE and NSE, the acquisition aims to generate strong synergy benefits through the integration of operations, marketing, and dealership networks. The consolidation is expected to reduce overall costs and marketing overhead while providing access to a wider dealership network for L5 category electric three-wheelers.

AGPL's L5 Vehicle Division currently manufactures and sells electric three-wheelers globally, with presence in Belgium, France, Italy, South Africa, Peru, and the Philippines. The division reported a turnover of Rs 62.27 crore in FY 2024-25, up significantly from Rs 14.12 crore in FY 2023-24 and Rs 0.33 crore in FY 2022-23.

The company stated that existing dealers of conventional vehicles will be able to sell L5 category electric three-wheelers, ensuring business continuity and profitability. This is particularly important as standalone electric three-wheeler dealerships face sustainability challenges due to limited sales volumes.

Following the transaction, AGPL will be able to focus more on its battery manufacturing business, which includes production of batteries, Battery Management Systems (BMS), chargers, telematics, and powertrains.

The company has obtained a valuation report from an IBBI registered valuer for the business being acquired, confirming the transaction will be conducted at arm's length despite being a related party transaction. The acquisition is in line with Atul Auto's existing business operations and requires no additional governmental or regulatory approvals.