Titan Europe likely to sell 10% stake in Wheels India valued at Rs 60 cr

Titan Europe Ltd, the foreign partner of TVS Group company's Wheels India Ltd, has decided to reduce its stake by selling five per cent to 10 per cent in the company. TVS Group firm and promoter of the company, Sundaram Finance Holding, will buy out the stake from the foreign partner.

Value of the stake sale is estimated at around Rs 60 crore, based on the assumption that Sundaram Finance Holdings Limited (SFHL) would be able to acquire 1,225,000  shares.

Titan Europe, a promoter of Wheels India, in the end of last year held 34.23 per cent stake in the auto component maker and reduced it to 20 per cent by end of March, 2020. The firm has been reducing stake gradually in the company.

Titan Europe is an international engineering group that manufactures wheels. According to reports, in 2012-13, Titan Europe issued an open offer to acquire 14.38 per cent stake in Wheels India for around Rs 103 crore, and a full response to the offer might have shifted the control of Wheels India from TVS Group, with a majority stake of over 50 per cent held by the foreign partner.

Wheels India was promoted by the TVS Group and has long had a technical-financial partnership with Titan Europe.