Setco Automotive Limited has completed the acquisition of the remaining stake in Lava Cast Private Limited, making it a wholly owned subsidiary following a series of approved transactions on 20 March 2026. The move marks a strategic step toward simplifying the group’s corporate structure and consolidating financial holdings under a single entity.
As part of the transaction, Setco Automotive acquired 13,460,000 equity shares, representing 10.31 percent of Lava Cast, from Setco Auto Systems Private Limited. An additional 10,000 equity shares were purchased from individual shareholders. With these acquisitions, Setco Automotive now holds 100 percent ownership of Lava Cast.
In parallel with the equity consolidation, the company also approved the acquisition of 140,000 non-convertible debentures issued by Lava Cast. Additionally, an unsecured inter-company loan amounting to INR 975.6 million was reassigned from Setco Auto Systems Private Limited to Setco Automotive, making the parent company the direct lender.
All transactions were executed for a nominal consideration of INR 1, underscoring that the exercise was structured as an internal financial reorganisation rather than a market-driven acquisition. The restructuring is intended to streamline ownership, consolidate inter-company investments, and enhance balance sheet clarity.
By aligning both equity and debt under the parent company, Setco Automotive aims to improve financial transparency and simplify reporting processes. The consolidation is also expected to support more efficient capital management and funding structures across the group.
Lava Cast operates within the automotive components sector and specialises in the manufacture of fully machined casting components. The company has demonstrated consistent operational growth in recent years, reporting a turnover of INR 873.79 million in FY 2024–25, compared to INR 676.91 million in FY 2023–24 and INR 355.45 million in FY 2022–23.
The board also approved the formal transfer of the INR 975.6 million unsecured loan previously extended to Lava Cast by Setco Auto Systems Private Limited. With this reassignment, Setco Automotive assumes the role of lender, further centralising financial control within the parent organisation. This consolidation reflects Setco Automotive’s continued focus on organisational efficiency and financial alignment, reinforcing its structure as it supports ongoing operations in the automotive components sector.
Founded in 1982, Setco Automotive Ltd is a leading manufacturer of clutches for Medium and Heavy Commercial Vehicles (M&HCVs) and a trusted provider of premium truck components. The company’s diverse product range includes clutches, flywheels, brake linings, flywheel ring gears, lubricants, clutch release bearing assemblies, center support bearings, coolants, and universal joint crosses. Its advanced manufacturing capabilities are further strengthened through its subsidiary, Lavacast Pvt Ltd., which specializes in high-precision machined castings.
