Stanley Electric may buy promoter stake in Lumax: Sources

Automobile lighting systems-maker Lumax Industries may soon have a new owner. CNBC-TV18 learns from sources that Stanley Electric is planning to acquire the 37% stake owned by Lumax's Indian promoter.

The acquisition is likely to trigger an open offer. Stanley Electric and the Jain family hold nearly 37% each in Lumax.

The company had entered into an agreement with Japan-based Stanley Electric in 1994. As per this agreement Stanley & its subsidiary were allotted 7,50,000 number of equity shares at a premium of Rs 64 per share.

The company is planning to invest Rs 150 crore to set up three new facilities and expand the capacity of its existing unit by next year.

At present, the company's annual production capacity is 4 million units.

When contacted, however, Lumax spokesperson said there are no talks on any stake sale between promoters.

Shares of Lumax were buzzing in trade today, up 7.37% at 408.