Sundaram Finance Holdings Acquires 24.16 Per Cent Stake in Axles India Elevating Its Shareholding to 62.98 Per Cent; Making Axles India a Wholly Owned Subsidiary
In the last 12 months stock price has given 11 per cent returns while in last 3 years stock has given 170 per cent returns.
Sundaram Finance Holdings Limited has completed the acquisition of shares in Axles India Limited. The company acquired 61,58,208 equity shares of Rs. 10/- each, representing 24.16 per cent of the paid-up equity share capital of Axles India Limited. The acquisition was made from the foreign promoter, Dana Global Products Inc. The total consideration for this acquisition was Rs. 182,68,32,403. This amount excludes stamp duty, applicable taxes, and other incidental expenses.
Following this acquisition, Sundaram Finance Holdings Limited's shareholding in Axles India Limited increased from 38.82 per cent to 62.98 per cent. As a result, Axles India Limited has become a subsidiary of Sundaram Finance Holdings Limited. The acquisition process was completed as of the date of the report.
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Axles India Limited's total revenue as of March 31, 2024, was Rs 855.10 crore. Axles India Limited's total turnover for the past three fiscal years is as follows: Rs 853.88 crore in 2021-22, Rs 746.35 crore in 2022-23, and Rs 569.56 crore in 2023-24.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 2,190.31 crore, reflecting a YoY growth of 20.26 per cent compared to Rs 1,821.36 crore in December 2023. The operating profit stood at Rs 1,728.80 crore, marking a 17.54 per cent increase from Rs 1,470.85 crore in the same quarter last year. The profit after tax (PAT) increased by 6.56 per cent to Rs 455.47 crore from Rs 427.45 crore in December 2023.
In FY24, the company posted a revenue of Rs 7,273.73 crore, registering a 32.23 per cent growth compared to Rs 5,500.69 crore in FY23. The net profit for the year stood at Rs 1,436.02 crore, up 8.15 per cent from Rs 1,327.76 crore in the previous financial year.
Sundaram Finance Holdings Ltd is primarily engaged in the business of Investments, business processing, and support services. It has a 100 per cent subsidiary, which is an outsourcing company offering various support services to large and mid-sized firms in and outside India. The company has been maintaining a healthy dividend payout of 21.4 per cent. In the last 12 months stock price has given 11 per cent returns while in last 3 years stock has given 170 per cent returns.
Axles India Limited is involved in the manufacturing of axle housings for the entire range of medium and heavy commercial vehicles. Axles India was established in 1982 as a joint venture with Eaton. Later, in 1998, Dana Holding Corporation acquired Eaton Axles Business, and Axles India's shares became part of this arrangement.
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Disclaimer: The article is for informational purposes only and not investment advice.