Lumax Auto is in the limelight today morning, with the stock price soaring 7.5% to Rs.109.55. Volumes are also pretty robust. Market cap stands at Rs.733 crore.
The market is happy with the news that its Board has approved the acquisition of roto moulded plastic Auto Component Business of OK Play Group.
OK Play Group comprises of OK Play India Limited and its wholly owned subsidiary viz. OK Play Auto Private Limited. The Group is engaged in manufacture and sale of roto moulded automotive plastic components, plastic molded toys, playground equipment, plastic children's furniture and E-vehicles in India.
The acquisition will provide Lumax Auto access to latest rota molding technologies and will enable the company to exploit fast-emerging growth opportunities in the automotive rota moulded plastic fuel tanks market for commercial vehicles, tractors and offroad vehicles in view of changing regulatory environment.