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Sundaram Finance to demerge non-financial service biz

Press Trust of India  |  Chennai 

: The Board of Non-Company today approved a proposal to demerge its non-financial services into a wholly owned subsidiary, Ltd (SFIL).

"Following the demerger, Ltd., would be listed on the stock exchange, subject to necessary approvals from regulators and shareholders", the city-based company said in a statement.



Over nearly six decades, has invested in various non-financial services businesses along with TVS Group companies in the automotive and manufacturing sector.

Some of the significant include Sundaram Clayton, Wheels India, IMPAL, Brakes India, Turbo Energy.

"The cumulative 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 cumulative dividend of Rs 199 crore in last five years", it said.

"The demerger process is being initiated through a Composite Scheme of arrangement as per the requirements of the Companies Act, 2013", it said.

Following the demerger, Ltd would be holding company of all non-financial service made by

As per the proposal, the shareholders of Ltd would receive one share of Ltd free of cost for every share held in SFL.

As a promoter, Ltd would hold 26.47 per cent stake in Ltd and the balance 73.53 per cent will be issued to all share holders of Ltd.

Ltd will be listed on the stock exchange, thereby providing a platform for shareholders to participate in the growth prospects.

"Over the years, our in the manufacturing and automotive sectors have not only yielded significant returns, but also demonstrated a strong track record of value creation", Ltd, MD, T T Srinivasaraghavan said.

"We will continue to explore non-financial services out of SFIL. Most importantly, Sundaram Finance's balance sheet and capital adequacy will remain robust post-demerger and we will continue to seek growth opportunities in the financial services landscape", he said.

As of March 31, 2016, Ltd Group reported revenues of Rs 5,035 crore and profits of Rs 583 crore. Total assets stood at Rs 28,027 crore and net worth was at Rs 4,195 crore at a consolidated level.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Sundaram Finance to demerge non-financial service biz

: The Board of Non-Banking Finance Company Sundaram Finance today approved a proposal to demerge its non-financial services investments into a wholly owned subsidiary, Sundaram Finance Investments Ltd (SFIL). "Following the demerger, Sundaram Finance Investments Ltd., would be listed on the stock exchange, subject to necessary approvals from regulators and shareholders", the city-based company said in a statement. Over nearly six decades, Sundaram Finance has invested in various non-financial services businesses along with TVS Group companies in the automotive and manufacturing sector. Some of the significant investments include Sundaram Clayton, Wheels India, IMPAL, Brakes India, Turbo Energy. "The cumulative 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 cumulative dividend of Rs 199 crore in last five years", it said. "The demerger process is being ... : The Board of Non-Company today approved a proposal to demerge its non-financial services into a wholly owned subsidiary, Ltd (SFIL).

"Following the demerger, Ltd., would be listed on the stock exchange, subject to necessary approvals from regulators and shareholders", the city-based company said in a statement.

Over nearly six decades, has invested in various non-financial services businesses along with TVS Group companies in the automotive and manufacturing sector.

Some of the significant include Sundaram Clayton, Wheels India, IMPAL, Brakes India, Turbo Energy.

"The cumulative 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 cumulative dividend of Rs 199 crore in last five years", it said.

"The demerger process is being initiated through a Composite Scheme of arrangement as per the requirements of the Companies Act, 2013", it said.

Following the demerger, Ltd would be holding company of all non-financial service made by

As per the proposal, the shareholders of Ltd would receive one share of Ltd free of cost for every share held in SFL.

As a promoter, Ltd would hold 26.47 per cent stake in Ltd and the balance 73.53 per cent will be issued to all share holders of Ltd.

Ltd will be listed on the stock exchange, thereby providing a platform for shareholders to participate in the growth prospects.

"Over the years, our in the manufacturing and automotive sectors have not only yielded significant returns, but also demonstrated a strong track record of value creation", Ltd, MD, T T Srinivasaraghavan said.

"We will continue to explore non-financial services out of SFIL. Most importantly, Sundaram Finance's balance sheet and capital adequacy will remain robust post-demerger and we will continue to seek growth opportunities in the financial services landscape", he said.

As of March 31, 2016, Ltd Group reported revenues of Rs 5,035 crore and profits of Rs 583 crore. Total assets stood at Rs 28,027 crore and net worth was at Rs 4,195 crore at a consolidated level.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
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Sundaram Finance to demerge non-financial service biz

: The Board of Non-Company today approved a proposal to demerge its non-financial services into a wholly owned subsidiary, Ltd (SFIL).

"Following the demerger, Ltd., would be listed on the stock exchange, subject to necessary approvals from regulators and shareholders", the city-based company said in a statement.

Over nearly six decades, has invested in various non-financial services businesses along with TVS Group companies in the automotive and manufacturing sector.

Some of the significant include Sundaram Clayton, Wheels India, IMPAL, Brakes India, Turbo Energy.

"The cumulative 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 cumulative dividend of Rs 199 crore in last five years", it said.

"The demerger process is being initiated through a Composite Scheme of arrangement as per the requirements of the Companies Act, 2013", it said.

Following the demerger, Ltd would be holding company of all non-financial service made by

As per the proposal, the shareholders of Ltd would receive one share of Ltd free of cost for every share held in SFL.

As a promoter, Ltd would hold 26.47 per cent stake in Ltd and the balance 73.53 per cent will be issued to all share holders of Ltd.

Ltd will be listed on the stock exchange, thereby providing a platform for shareholders to participate in the growth prospects.

"Over the years, our in the manufacturing and automotive sectors have not only yielded significant returns, but also demonstrated a strong track record of value creation", Ltd, MD, T T Srinivasaraghavan said.

"We will continue to explore non-financial services out of SFIL. Most importantly, Sundaram Finance's balance sheet and capital adequacy will remain robust post-demerger and we will continue to seek growth opportunities in the financial services landscape", he said.

As of March 31, 2016, Ltd Group reported revenues of Rs 5,035 crore and profits of Rs 583 crore. Total assets stood at Rs 28,027 crore and net worth was at Rs 4,195 crore at a consolidated level.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22