Lumax Auto Technologies guarantees ₹15 crore loan for subsidiary, plans ₹150 crore plant

Agreement
Auto Ancillaries

Blacklitt Research24 October 20262 min read

Lumax Auto Technologies (NSE: LUMAXTECH) approved an additional corporate guarantee, letter of comfort or post-dated cheques of up to ₹15 crore for a loan to its subsidiary Lumax Greenfuel Energy Solutions, it said in a filing on 24 Oct 2026. The Board also approved a new Mechatronics plant at Manesar, Haryana, with a capital outlay of around ₹150 crore.

Key highlights

Additional guarantee amount: up to ₹15 crore for subsidiary loans
Company holding in Lumax Greenfuel: 60% of equity
Manesar plant capital outlay: around ₹150 crore
Expected peak annualised turnover: around ₹500 crore after commissioning

The approvals in numbers

Item	Detail
Guarantee beneficiary	Lumax Greenfuel Energy Solutions Private Limited (LGESPL), a subsidiary
Additional amount	Up to ₹15 crore
Company holding in LGESPL	60% of equity share capital
Manesar plant capital outlay	Around ₹150 crore
Expected peak annualised turnover	Around ₹500 crore after commissioning
Commissioning	In 2 phases, starting Q3 FY 2028

A guarantee for a 60%-owned subsidiary

The Board approved issuing a corporate guarantee, letter of comfort or post-dated cheques to secure loans from banks, financial institutions or NBFCs to LGESPL, for an additional amount of up to ₹15 crore, on the Audit Committee's recommendation. The company holds 60% of LGESPL's equity.

The company says the transaction will be on an arm's length basis and that there is no foreseeable impact of the guarantee on the company, as the loan is required to meet LGESPL's capex and working capital needs. Relative to the company's latest quarterly consolidated total income of ₹1,378.78 crore, the ₹15 crore additional amount is small.

A new Manesar plant and an Aurangabad relocation

The Board approved a Mechatronics manufacturing facility at Manesar, Haryana, with a capital outlay of around ₹150 crore, funded by a mix of debt and internal accruals. The company says the plant will cater to electronic components, including Body Control Module, for leading OEMs.

The company expects peak annualised turnover of around ₹500 crore after commissioning, in 2 phases starting Q3 FY 2028. Against the ₹150 crore outlay, that is about 3.3 times. The Board also took note of relocating a plant from Sahajapur, Aurangabad to MIDC Waluj, Chhatrapati Sambhajinagar.

What the approvals mean for Lumax Auto Technologies' shareholders

The approvals add a guarantee of up to ₹15 crore for a subsidiary and commit a planned ₹150 crore outlay for the Manesar plant, funded partly by debt. The filing does not say the lender or the amount already drawn under the LGESPL loan, the reason for the Aurangabad relocation, or the split of the Manesar funding between debt and internal accruals.

The next dated step in the filing is the start of commissioning in Q3 FY 2028.

Reference: Original filing (PDF)

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