Date: October 01, 2026
Investment in Subsidiary
Atul Auto Limited has invested ₹18,34,39,800 (Rupees Eighteen Crore Thirty-Four Lakh Thirty-Nine Thousand Eight Hundred Only) by way of subscription in the equity share capital of its wholly-owned subsidiary Khushbu Auto Finance Limited (KAFL) on a rights basis. The shares were allotted on September 30, 2026.
With this investment, the total investment made by Atul Auto in KAFL stands at ₹96.15 crore. KAFL remains a wholly-owned subsidiary of Atul Auto Limited.
Subsidiary Company Details
Name: Khushbu Auto Finance Limited (KAFL)
Business: Non-Banking Finance Company categorized as Investment and Credit Company (NBFC ICC), previously Asset Finance Company (AFC)
Relationship: Wholly-owned subsidiary of Atul Auto Limited
Primary Business: Captive finance company engaged primarily in financing three-wheelers of Atul Auto Limited
Date of Incorporation: August 19, 1994
Country of Presence: India
Financial Metrics (as of March 31, 2026):
- Paid-up share capital: ₹7,088 lakh
- Turnover: ₹4,583 lakh
- Net worth: ₹14,067 lakh
- Profit after tax for FY 2025-26: ₹294 lakh
Turnover History:
- FY 2025-26: ₹4,583 lakh
- FY 2024-25: ₹4,438 lakh
- FY 2023-24: ₹3,633 lakh
Transaction Details
Shares Acquired: 91,40,000 equity shares
Issue Price: ₹20.07 per share
Total Investment: ₹18,34,39,800
Shareholding Impact: Atul Auto Limited's shareholding percentage in KAFL remains unchanged at 100.00%
Transaction Purpose
The investment proceeds will be utilized to redeem Redeemable Preference Shares (PPS) issued by KAFL to Promoters (including Promoter Group) of Atul Auto Limited in 2021.
Regulatory Classification
The acquisition would not fall within related party transaction(s). Promoters (including Promoter Group) of Atul Auto Limited are holding total 1,82,79,400 Redeemable Preference Shares (PPS) of KAFL. Except for this, the Promoter/promoter group/group companies except Atul Auto Limited have no interest in the transaction. The transaction is conducted at arm's length.
Regulatory Approvals
No governmental or regulatory approvals were required for this acquisition.
Transaction Completion
The equity shares against the current investment were allotted on September 30, 2026, completing the acquisition.