CHENNAI: The Board of Non-Banking Finance Company Sundaram Finance currently authorized a offer to demerge a non-financial services investments into a unconditionally owned subsidiary, Sundaram Finance Investments Ltd (SFIL).
“Following a demerger, Sundaram Finance Investments Ltd., would be listed on a batch exchange, theme to required approvals from regulators and shareholders”, a city-based association pronounced in a statement.
Over scarcely 6 decades, Sundaram Finance has invested in several non-financial services businesses along with TVS Group companies in a automotive and production sector.
Some of a poignant investments embody Sundaram Clayton, Wheels India, IMPAL, Brakes India, Turbo Energy.
“The accumulative investments in these companies (in book value terms) has grown from Rs 23 crore in 2006-07 to over Rs 150 crore as of financial year 2016-17 and have yielded accumulative division of Rs 199 crore in final 5 years”, it said.
“The demerger routine is being instituted by a Composite Scheme of arrangement as per a mandate of a Companies Act, 2013”, it said.
Following a demerger, Sundaram Finance Investments Ltd would be holding association of all non-financial use investments done by Sundaram Finance.
As per a proposal, a shareholders of Sundaram Finance Ltd would accept one share of Sundaram Finance Investments Ltd giveaway of cost for each share reason in SFL.
As a promoter, Sundaram Finance Ltd would reason 26.47 per cent interest in Sundaram Finance Investments Ltd and a change 73.53 per cent will be released to all share holders of Sundaram Finance Ltd.
Sundaram Finance Investments Ltd will be listed on a batch exchange, thereby providing a height for shareholders to attend in a expansion prospects.
“Over a years, a investments in a production and automotive sectors have not usually yielded poignant returns, though also demonstrated a clever lane record of value creation”, Sundaram Finance Ltd, MD, T T Srinivasaraghavan said.
“We will continue to try non-financial services investments out of SFIL. Most importantly, Sundaram Finance’s change piece and collateral endowment will sojourn strong post-demerger and we will continue to find expansion opportunities in a financial services landscape”, he said.
As of Mar 31, 2016, Sundaram Finance Ltd Group reported revenues of Rs 5,035 crore and increase of Rs 583 crore. Total resources stood during Rs 28,027 crore and net value was during Rs 4,195 crore during a combined level.