Atul Auto Invests ₹18.34 Crore in Khushbu Auto Finance

has invested ₹18.34 crore in its wholly owned subsidiary, Khushbu Auto Finance Limited (KAFL), through a rights issue. The subsidiary allotted 91.40 lakh equity shares at an issue price of ₹20.07 per share on September 30, 2026. Following this investment, Atul Auto's total investment in KAFL has increased to ₹96.15 crore, while its shareholding remains unchanged at 100%. Khushbu Auto Finance is an RBI-registered Non-Banking Financial Company (NBFC), categorised as an Investment and Credit Company (NBFC-ICC). It primarily operates as a captive financing arm, providing financing facilities for Atul Auto's three-wheelers. The funds raised through the rights issue will be utilised by KAFL to redeem redeemable preference shares issued to the promoters and promoter group of Atul Auto in 2021. The company clarified that the transaction does not fall under related-party transactions and has been undertaken at arm's length. KAFL reported revenue of ₹45.83 crore in FY26, compared with ₹44.38 crore in FY25 and ₹36.33 crore in FY24. Its net profit stood at ₹2.94 crore in FY26, with a net worth of ₹140.67 crore as of March 31, 2026. For Atul Auto, the investment supports its captive financing operations, which play an important role in facilitating vehicle purchases through customer financing. Investors may monitor KAFL's loan book growth, asset quality, profitability and financing support to Atul Auto's three-wheeler business. Disclosure: I do not hold any position or financial interest in the mentioned stock.