Sundram Fasteners has acquired 16,80,000 equity shares (constituting 24%) of Rs 10 each from Bleistahl Produktions GmbH & Co. KG (Bleistahl), in the share capital of Sundram Precision Components (SPCL) (formerly Sundram Bleistahl), a subsidiary of the company.
The company has acquired the above mentioned equity shares from Bleistahl in SPCL for a cash consideration at Rs 31.45 per share. The pricing for shares conforms to the valuation norms prescribed under Foreign Exchange Management Act, 1999. The acquisition / transfer of shares was completed on March 27, 2017.
With this acquisition, Sundram Fasteners has 100% equity stake in SPCL (prior to acquisition, the company was holding 76%) and SPCL has thus become a wholly owned subsidiary of the company with effect from March 27, 2017.
SPCL is engaged in the manufacture of parts for motor vehicle, sintered parts such as valve guides, valve seats and other parts catering to automotive industry.