Auto component maker Sundaram-Clayton Ltd has acquired an additional stake of 11.20 per cent in its subsidiary Emerald Haven Realty Ltd (EHRL) by purchasing shares from the existing shareholders. The acquisition is for a cash consideration of ₹42.92 crore calculated at ₹15 per share.
Consequent to the additional acquisition, the company’s stake in EHRL has increased to 77.60 per cent from 66.40 per cent, Sundaram-Clayton Ltd said in a regulatory filing on Saturday.
EHRL is engaged in the business of real estate development. The auto component maker cited “diversification potential” as the major objective for acquiring an additional stake in EHRL.
Sundaram-Clayton Ltd has acquired 2,86,11,220 equity shares of EHRL from Srinivasan Trust, which is part of the promoter group and the promoter and promoter group continue to hold shares in EHRL. “The transaction falls under the category of related party transaction and the transfer of shares was done at “arms-length” based on a valuation report,” it added.
According to the filings, the company’s turnover in 2022-23 stood at ₹22.59 crore with a loss of ₹41.84 crore.
The company said the acquisition was completed on June 30. Shares of Sundaram-Clayton Ltd closed flat at ₹4,685 on NSE.