Setco Automotive Limited Approves Scheme of Amalgamation for Subsidiary Lava Cast Private Limited

Setco Automotive Limited Approves Scheme of Amalgamation for Subsidiary Lava Cast Private Limited​

Setco Automotive Limited announced that its Board of Directors approved a draft Scheme of Amalgamation (merger by absorption) of Lava Cast Private Limited (LCPL), a wholly-owned subsidiary, with the Company on March 23, 2026. The meeting of the Board commenced at 3:20 p.m. and concluded at 3:45 p.m.

The Scheme is subject to receipt of necessary approvals from the National Company Law Tribunal (NCLT), shareholders and creditors, as may be directed by NCLT, other statutory and regulatory authorities, and lenders.

Since LCPL is a wholly-owned subsidiary of the Company, no shares are proposed to be issued, nor any consideration is proposed to be paid, and there will be no change in the shareholding pattern of the Company.

LCPL, engaged in the manufacture of basic precious and non-ferrous metals, including casting components, reported a turnover of 8,737.90 Lakhs and a net worth of -10,256.69 Lakhs as of March 31, 2025. Setco Automotive Limited, engaged in manufacturing pumps, torque rod bushes, and related products, reported a turnover of 114.38 Lakhs and a net worth of 7,386.68 Lakhs as of March 31, 2025. The consolidated figures for the Company were 71,862.76 Lakhs in turnover and (69,382.13) Lakhs in net worth as of the same date.

The rationale for the Scheme includes combining business interests, achieving a simplified corporate structure, reducing regulatory compliance costs, consolidating operations, and improving long-term growth prospects.

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