Services
Equity Investment with CA Abhay
Stock Market Masterclass
Option Trading with CA Abhay
FNO Stocks with CA Abhay
Equity Trading with CA Abhay
TVS Holdings Announces Acquisition of 100% Stake in Radial IT Park Companies
Team Finance Saathi
18/Dec/2024
What's covered under the Article:
- TVS Emerald, a subsidiary of TVS Holdings, acquires 100% stake in Radial IT Park Phase II & III.
- The acquisition cost amounts to INR 576.33 crore, with both entities becoming subsidiaries of TVS Emerald.
- The move will expand TVS Emerald’s market presence and capabilities in construction and development.
In a significant development, TVS Holdings Limited (formerly Sundaram-Clayton Limited) has announced the acquisition of 100% equity stake in two entities, Radial (Phase II) IT Park Private Limited and Radial (Phase III) IT Park Private Limited, through its wholly owned subsidiary, TVS Emerald Limited. This acquisition was formalized with the signing of Share Purchase Agreements (SPAs) on 17th December 2024, making the Target Companies step-down subsidiaries of TVS Holdings.
The total acquisition cost for both companies amounts to a substantial INR 576.33 crore, which includes equity shares and Compulsorily Convertible Debentures (CCDs), each acquired for a sum of INR 234.33 crore for Phase II and INR 342 crore for Phase III.
The acquisition is expected to have a positive impact on TVS Emerald’s business, enabling the company to expand its market reach and strengthen its position in the construction and development sector. Both Radial IT Park Phase II and Phase III are involved in commercial real estate development within the burgeoning IT Park sector, with a focus on creating high-end infrastructure for the IT industry. TVS Emerald’s acquisition will allow it to explore new revenue opportunities and increased market penetration.
Radial (Phase II) IT Park Private Limited and Radial (Phase III) IT Park Private Limited have faced a challenging financial history, having reported nil turnover in the last three years. However, TVS Holdings believes the acquisition will offer substantial future growth potential, thanks to its strategic value in the construction and development market.
The Target Companies, both incorporated in Chennai, will now be fully owned by TVS Emerald, marking a significant step in TVS Holdings’ expansion strategy within the real estate and infrastructure sectors. This acquisition aligns with TVS Holdings' broader goal of investing in high-growth sectors that complement its core business operations.
This acquisition will help TVS Emerald gain access to significant resources, thereby enabling the company to further enhance its business operations and meet the growing demand for commercial real estate and infrastructure development in India.
The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO