Setco Automotive Limited approved a series of transactions on 20 March 2026 to acquire additional equity shares, non-convertible debentures, and assign inter-company loans related to Lava Cast Private Limited, resulting in the entity becoming a wholly owned subsidiary. This reflects a shift towards simplifying the group’s corporate structure rather than expanding operations.
The company acquired 13,460,000 equity shares, representing 10.31 percent of Lava Cast, from Setco Auto Systems Private Limited, along with an additional 10,000 shares from individual shareholders. These transactions resulted in full ownership of the subsidiary.
Alongside the equity consolidation, Setco Automotive approved the acquisition of 140,000 non-convertible debentures of Lava Cast and reassigned an unsecured loan of INR 975.6 million from a group subsidiary to itself. All transactions were executed for a nominal consideration of INR 1, indicating that the exercise was structured as an internal financial reorganisation.
The filing stated that the restructuring is intended to simplify the group’s ownership framework, consolidate inter-company investments, and improve balance-sheet transparency. By moving both equity and debt to the parent level, Setco Automotive aligns control and financial exposure within a single entity, which may streamline reporting and funding structures.
Lava Cast operates in the auto component segment, manufacturing fully machined casting components. The company reported turnover of INR 873.79 million in FY 2024–25, up from INR 676.91 million in FY 2023–24 and INR 355.45 million in FY 2022–23, indicating growth in its operating performance during the period.
In addition, the board approved the assignment of an unsecured loan of INR 975.6 million availed by LCPL from Setco Auto Systems Private Limited to Setco Automotive, making the latter the lender in place of the subsidiary.
Setco Automotive Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
