Lumax Auto soars 12% as it acquires majority stake in IAC Group's India biz

IAC India is a well-established Tier-1 interior systems and components supplier to key automotive OEMs in India including Mahindra, Maruti Suzuki, Volkswagen and Volvo Eicher Commercial Vehicles.

Shares of Lumax Auto Technologies surged 12 per cent to Rs 248.20 in Monday’s intra-day trade, after the company signed agreement to acquire majority stake (75 per cent) in IAC International Automotive India Private Limited (IAC India) from the International Automotive Components Group (IAC Group) at around Rs 587 crore.

The 75 per cent shareholding to be acquired in IAC India will be on a fully diluted basis through SPV (acquisition vehicle), on cash consideration, and to be paid by internal accruals & external debt.

"Lumax and IAC will work as strategic partners and leverage their respective competitive