Sundaram Clayton, TVS Motor sell stake in Suprajit Engineering

Our Bureau Chennai | Updated on June 17, 2021

Unifi Capital buys part of the stake

Sundaram Clayton and TVS Motor Company almost exited from Suprajit Engineering as they sold a significant portion of their stake in the firm on Wednesday. According to the bulk deal data on the NSE, TVS Motor Company sold 28.09 lakh shares and Sundaram Clayton sold 56.62 lakh shares at an average price of ₹284.70.

Most of the shares (about 46.51 lakh shares) were bought by Unifi Capital, a Chennai-based portfolio management company.

Also read: TVS Motor cuts electric scooter prices in Bengaluru, Delhi

As of March 2021, Sundaram Clayton held 4.13 per cent stake (or 57.72 lakh shares) and TVS Motor held 2.07 per cent stake (or 28.92 lakh shares) in the Karnataka-based Suprajit Engineering.

The stock of Suprajit fell 8.25 per cent to close at ₹284.70 on the BSE on Wednesday.

Shareholding pattern

At the end of March 2021, promoters held 44.57 per cent stake in Suprajit Engineering. Mutual funds held 10.84 per cent stake (mostly by DSP Small Cap Fund and HDFC Small Cap Fund) and foreign portfolio investors held 4.33 per cent stake. While small investors held 16.58 per cent stake in the company, HNIs held 9.06 per cent stake. The HNIs included Shobita Punja and MRB Punja who collectively held 2.38 per cent stake in the small-cap company.

The Karantaka-based firm had posted a profit of ₹48.83 crore for the quarter-ended March 31, 2021 on revenues of ₹346.76 crore. For FY21, it had posted a PAT of ₹137.92 crore on total revenues of ₹1,112.28 crore.

TVS family deal

TVS family members in December had announced restructuring of group companies. Venu Srinivasan, MD of TVS Motor Company, had informed the exchanges that the family has agreed to subscribe to the terms of a memorandum of family arrangement to align and synchronise the ownership of shares in various group companies.

Subsequently, the company had set in process a composite scheme of amalgamation and arrangement that included demerger of various businesses managed by various family members into companies that are majority-owned by respective families.

However, it is not known whether the sale of stake in Suprajit Engineering is part of the structured deal.

Published on June 17, 2021

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