The Board of Directors of ATUL Auto Ltd has at its meeting held on 30th October 2020 approved to acquire 70% of the equity share capital of Khushbu Auto Finance Limited ("KAFL") whereby making it Wholly Owned Subsidiary subject to required regulatory approval. Currently, the Company holds 30% of the equity share capital of KAFL.
KAFL is Non-Banking Finance Company registered with Reserve Bank of India ("RBI"). KAFL is having networth of Rs.63.67 Crore as on March 31, 2020 and Turnover of Rs.32.65 Crore in FY 2019-20. The Company is engaged mainly in the business of financing of three-wheeler automobiles. KAFL has business presence in the state of Gujarat, Haryana, Andhra Pradesh, Kerala and Karnataka.
The Company presently holds 1,18,20,000 (30%) equity shares of KAFL. Out of total 2,75,80,000 equity shares of KAFL to be acquired, 2,01,43,965 equity shares would be acquired from the related parties which include Directors, their relatives, Promoter and members of the Promoter Group of the Company. The same is acquired at the fair value derived by Independent Registered Valuer hence at "arms length". Equity Shares of face value of Rs.10 per share will be acquired at Rs.16.16 per equity share with the total consideration amounting to Rs.44,56,92,800/-
The acquisition is made with an object to ensure the desired finance support to the retail customers of vehicles of the Company.
With 100% control over KAFL, it will become a captive finance company. The sufficient availability of finance to the retail customers would give positive effect in sales of vehicles of the Company.
Shares of ATUL AUTO LTD. was last trading in BSE at Rs.159.1 as compared to the previous close of Rs. 155.8. The total number of shares traded during the day was 5380 in over 286 trades.
The stock hit an intraday high of Rs. 159.7 and intraday low of 155.8. The net turnover during the day was Rs. 844894.