MUMBAI: Sundram Fasteners‘s chairman Suresh Krishna’s eldest daughter, Preethi Krishna, is planning to promote part of her stake within the holding firm of the auto elements maker. The transfer by US-based Preethi (59), a fourth-gen member of the storied TV Sundram Iyengar clan, is being seen as a step in the direction of exiting the household enterprise.
Preethi’s share can be purchased by her father, mom Usha Krishna, and two sisters – Arathi Krishna and Arundathi Krishna – consolidating their pursuits within the holding firm: TVS Sundram Fasteners.To finance the transaction, the 4 will promote Sundram Fasteners shares value Rs 400 crore to institutional buyers like West Asian funds.
As soon as the share-purchase transaction is concluded, Preethi’s stake within the holding firm will fall to 14-15% from 20%. Suresh, Usha, Arathi and Arundathi too presently personal 20% every within the holding firm, which in flip holds 48% of Sundram Fasteners, which has a market worth of Rs 28,000 crore.
Sources stated the 4 relations by way of TVS Sundram Fasteners will promote 1.5% stake of Sundram Fasteners through a block deal to international buyers for Rs 400 crore. The share-sale is to finance one other transaction between them and Preethi at TVS Sundram Fasteners, they added. The quartet will purchase part of Preethi’s stake within the holding firm as she needs to cut back her curiosity within the unit.
Although Preethi is a director of Sundram Fasteners, she does not play an energetic function within the operations of the Chennai-based firm as in comparison with her two sisters. Arathi (55) is the MD of Sundram Fasteners whereas Arundathi (50) is the joint MD.
Preethi is settled within the US and her 20% stake in TVS Sundram Fasteners is held by way of a belief, which is managed by her husband, Ram Sundaram, a former Goldman Sachs honcho. Emails despatched to Ram Sundaram and Suresh Krishna did not elicit any reply.
At one cut-off date, Sundram Fasteners was a part of the undivided TVS Group. Now the south-based conglomerate’s various models are run by totally different relations as a part of the enterprise separation settlement between them. As an illustration, Suresh’s first cousin Venu Srinivasan controls TVS Motor and Sundaram Clayton.
In a typical holding firm, which in flip holds a listed entity, the exit of a selected member of the family turns into tough because it can’t occur with out the consent of all the opposite shareholders of the holding firm. This imposes liquidity issues for the seller-shareholder, stated a lawyer. Nevertheless, the upside is that the whole shareholding is consolidated within the holding firm and subsequently, voting rights with respect to the listed entity might be exercised by one widespread shareholder i.e. the holding firm, he stated.
Preethi’s share can be purchased by her father, mom Usha Krishna, and two sisters – Arathi Krishna and Arundathi Krishna – consolidating their pursuits within the holding firm: TVS Sundram Fasteners.To finance the transaction, the 4 will promote Sundram Fasteners shares value Rs 400 crore to institutional buyers like West Asian funds.
As soon as the share-purchase transaction is concluded, Preethi’s stake within the holding firm will fall to 14-15% from 20%. Suresh, Usha, Arathi and Arundathi too presently personal 20% every within the holding firm, which in flip holds 48% of Sundram Fasteners, which has a market worth of Rs 28,000 crore.
Sources stated the 4 relations by way of TVS Sundram Fasteners will promote 1.5% stake of Sundram Fasteners through a block deal to international buyers for Rs 400 crore. The share-sale is to finance one other transaction between them and Preethi at TVS Sundram Fasteners, they added. The quartet will purchase part of Preethi’s stake within the holding firm as she needs to cut back her curiosity within the unit.
Although Preethi is a director of Sundram Fasteners, she does not play an energetic function within the operations of the Chennai-based firm as in comparison with her two sisters. Arathi (55) is the MD of Sundram Fasteners whereas Arundathi (50) is the joint MD.
Preethi is settled within the US and her 20% stake in TVS Sundram Fasteners is held by way of a belief, which is managed by her husband, Ram Sundaram, a former Goldman Sachs honcho. Emails despatched to Ram Sundaram and Suresh Krishna did not elicit any reply.
At one cut-off date, Sundram Fasteners was a part of the undivided TVS Group. Now the south-based conglomerate’s various models are run by totally different relations as a part of the enterprise separation settlement between them. As an illustration, Suresh’s first cousin Venu Srinivasan controls TVS Motor and Sundaram Clayton.
In a typical holding firm, which in flip holds a listed entity, the exit of a selected member of the family turns into tough because it can’t occur with out the consent of all the opposite shareholders of the holding firm. This imposes liquidity issues for the seller-shareholder, stated a lawyer. Nevertheless, the upside is that the whole shareholding is consolidated within the holding firm and subsequently, voting rights with respect to the listed entity might be exercised by one widespread shareholder i.e. the holding firm, he stated.
