Sundaram Finance Holdings Limited has completed the sale of its entire 39% stake in Sundaram Composite Structures Private Limited to Brakes India Private Limited for ₹24.64 crore through an off-market transaction. The divestment, originally expected by December 2025, was disclosed in a filing dated September 30, 2025.
Transaction Details
- Seller: Sundaram Finance Holdings Limited
- Buyer: Brakes India Private Limited
- Stake Sold: 39% in Sundaram Composite Structures Pvt Ltd
- Consideration: ₹24,64,80,000
- Mode of Transaction: Off-market sale
Following the completion of this transaction, Sundaram Composite Structures will cease to be an associate company of Sundaram Finance Holdings.
Strategic Rationale
The divestment is intended to allow Brakes India to leverage its manufacturing expertise and gain greater operational control over Sundaram Composite Structures, which holds a majority stake in MIND S.r.l., Italy.
Sundaram Finance Holdings noted that the move is strategically beneficial for its shareholders, as it mitigates potential future financial risks associated with the subsidiary while enabling Brakes India to optimize manufacturing operations.
Outlook
By completing this transaction, Sundaram Finance Holdings focuses on protecting shareholder value and streamlining its investment portfolio. The deal also positions Brakes India to enhance efficiency and strategic oversight in Sundaram Composite Structures’ operations, potentially strengthening its global footprint in the composites sector.
Summary
Sundaram Finance Holdings has sold its 39% stake in Sundaram Composite Structures to Brakes India for ₹24.64 crore via an off-market transaction. The divestment allows Brakes India to leverage its manufacturing expertise and gain greater control over the subsidiary, which holds a majority stake in MIND S.r.l., Italy. Sundaram Finance Holdings highlighted that the move protects shareholders from potential future financial risks and streamlines its investment portfolio, while Sundaram Composite Structures ceases to be its associate company.
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