Sundaram Finance Holdings Limited has informed the Exchange regarding Notice of Postal Ballot
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Sundaram Finance Holdings Limited has issued a postal ballot notice to shareholders seeking approval for the dis-investment of its entire 39% stake (3,90,00,000 equity shares of Rs. 10 each) in associate company Sundaram Composite Structures Private Limited (Suncomp) to Brakes India Private Limited. The deal is valued at Rs. 24.64 crores (Rs. 6.32 per share), which represents 15.40% of the company's FY25 consolidated turnover of Rs. 160.02 crores. Suncomp, which manufactures composite fibre parts for the automotive sector, has been incurring losses, and the fair value of the investment has already diminished to Rs. 6.32 per share. Brakes India currently holds 10% in Suncomp; once the sale is complete (expected by December 2025), Suncomp will cease to be an associate of SFHL. E-voting runs from August 30, 2025 to September 28, 2025.
This is a small, clean-up divestment of a loss-making associate at book value, removing the need for further turnaround investment. The impact on the stock is likely neutral to mildly positive, as it exits a non-performing asset without affecting the core business.