Atul Auto Limited has approved the acquisition of the L5 electric three-wheeler vehicle business from its subsidiary Atul Greentech Private Limited as a going concern through a slump sale. The decision was taken by the board of directors at a meeting held on 15 January 2026 and is intended to consolidate the group’s electric vehicle operations within the listed entity.
The acquisition covers the L5 Vehicle Division of Atul Greentech, which is engaged in the manufacturing and sale of L5 category electric three-wheelers along with key vehicle kits and components. These include batteries, battery management systems, chargers, telematics and powertrains. The transaction has been classified as a related-party transaction, as Atul Auto holds 79.39 percent of the equity in Atul Greentech.
The company’s stock exchange filing stated that the business undertaking is being acquired at arm’s length and that the company has obtained a valuation report from an Insolvency and Bankruptcy Board of India (IBBI) registered valuer. The consideration for the acquisition has been fixed at INR 352.6 million and will be paid entirely in cash, with no share issuance or swap involved.
The indicative time period for completion of the acquisition is 15 days from the approval of the audit committee and the board of directors. The company said no governmental or regulatory approvals are required for the transaction.
Atul Auto said the acquisition is in line with its existing business and is expected to generate operational synergies through the integration of manufacturing, marketing and dealership operations. The integration is expected to reduce overall costs and marketing overheads and provide access to a wider dealership network for L5 category electric three-wheelers. The company also noted that the combined platform would strengthen after-sales service, spare parts management and marketing by leveraging its established dealer and service network.
The filing added that existing dealers of conventional vehicles would also sell L5 category electric three-wheelers following the integration, which is expected to support business continuity and profitability for dealers. The company highlighted that standalone L5 electric three-wheeler dealerships face sustainability challenges due to limited sales volumes, and that the combined model is intended to improve operational efficiency.
As part of the transaction, Atul Greentech will hive off its L5 Vehicle Division and focus more on its battery manufacturing business. The company said this would allow Atul Greentech to allocate resources more effectively towards its battery manufacturing division.
Financial disclosures show that the L5 Vehicle Division recorded turnover of INR 622.7 million in the 2024–25 financial year, compared with INR 141.2 million in 2023–24 and INR 3.3 million in 2022–23. Atul Greentech’s total turnover stood at INR 641.0 million in 2024–25, with a reported loss of INR 159.3 million for the year. The L5 electric three-wheelers are sold in international markets including Belgium, France, Italy, South Africa, Peru and the Philippines.
Atul Auto Limited is engaged in the manufacturing and sale of three-wheeler vehicles and operates manufacturing facilities in Gujarat, serving domestic and export markets.