The shares of this smallcap company engaged in the business of investments, business processing, and support services came into focus after the company approved acquisition of 24.16 percent stake in Axles India Limited, for Rs 183 crore from a foreign promoter.
Stock Movement
With a market capitalization of Rs 6,808.59 crore, Sundaram Finance Holdings Ltd jumped 4 percent in Friday’s trading session and made a high of Rs 312.90 per share compared to its previous closing price of
Rs 299.80 per share. The stock retraced from its day’s high and was trading at Rs 306.55 which is over 2 percent higher than the previous closing price.
What Happened
The Board has approved the acquisition of 61 lakh equity shares or a 24.16 percent stake in Axles India Limited, from the foreign promoter, Dana Global Products Inc. The total consideration stands at Rs 182.68 crore. Axles India manufactures Axle Housings for the entire range of Medium and Heavy Commercial Vehicles.
Sundaram Finance Holdings will be executing a Share Purchase Agreement (SPA) with Dana Global Products Inc. The acquisition is expected to be completed on or before April 30, 2025.
Post acquisition, Sundaram Finance Holdings’ stake in Axles India Limited will increase from 38.82 percent to 62.98 percent, making Axles India Limited a subsidiary.
Compa ny Overview
Sundaram Finance Holdings Ltd is engaged in investment activities, support services, and business processing. The company also has a wholly-owned subsidiary that operates as an outsourcing firm, providing a range of support services to both large and mid-sized enterprises within India and internationally.
Financial Performance
When looking at the financial statements, the company reported a 32 percent increase in its revenue from Rs 25 crore to Rs 33 crore in Q3 FY24-25. This was accompanied by a 4 percent increase in net profits from Rs 102 crore to Rs 106 crore during the same period.
Written by Shwetha Sairam
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