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Atul Auto Limited Establishes Atulease Private Limited

21 June 20243 mins read by Angel One
Atul Auto Limited's new subsidiary, Atulease Private Limited, focuses on vehicle leasing, aligning with strategic growth plans in the transport sector.
Atul Auto Limited Establishes Atulease Private Limited
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On June 12, 2024, Atul Auto Limited established a new subsidiary, Atulease Private Limited. The company has an initial investment of ₹10 lakh in share capital, with further funds to be injected per business requirements.

Mr Vijay Kedia, a Non-Executive Director of Atul Auto Limited, has subscribed to 20,000 equity shares of Atulease Private Limited at a face value of ₹10 per share, constituting 20% of the share capital. This acquisition falls under a related party transaction as Mr Vijay Kedia is associated with Atul Auto Limited.

Objects of the Acquisition

Atulease Private Limited operates within the vehicle leasing industry. Its primary objective is to purchase, acquire, maintain, operate, and manage various types of vehicles. These vehicles will be used for road transport, including offering them for hire, lease, rental, or similar arrangements. This acquisition aligns with Atul Auto Limited’s strategic interests, expanding its business scope into vehicle leasing services, which complements its existing operations.

Details of Acquisition

Atul Auto Limited has acquired 80,000 equity shares of Atulease Private Limited, representing 80% of its share capital, through a cash transaction. The investment involves a total sum of ₹8,00,000, with each share subscribed at a face value of ₹10. This acquisition results in Atul Auto Limited holding an 80% shareholding in Atulease Private Limited, thereby gaining significant control over its operations.

About Atulease Private Limited

Atulease Private Limited, incorporated recently on June 12, 2024, focuses on acquiring, maintaining, operating, and managing various types of vehicles for road transport purposes. The company intends to offer these vehicles for hire, lease, rental, or similar arrangements.

About Atul Auto Ltd

Atul Auto Ltd Limited has established itself as a leading manufacturer of three-wheeler commercial vehicles based in Gujarat. Over the years, it has evolved from producing the popular CHHAKADA to contemporary models like ATUL Shakti, ATUL GEM, ATUL Smart, and most recently, Atul Gemini-Dz, marking significant advancements in its product lineup.

On June 13, 2024, the share price of Atul Auto Ltd Limited opened at ₹556.00 and closed at ₹552.20 as of 03:30 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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