Shares of TVS Group’s companies rose 5.8-16.3 per cent on Friday, following the news of restructuring to give members of TVS family complete ownership of businesses that they manage.
Shares of TVS Electronics surged 16.38 per cent, TVS Srichakra gained 11.84 per cent, Sundaram Clayton Ltd. rose 10.7 per cent and Sundaram Brake Linings Ltd. 5.85 per cent. However, TVS Motor Company and Sundaram Finance were down at 3.23 per cent and 0.06 per cent, respectively.
Further, the exchange filings did not disclose the changes in the holding structure of promoters.
“TVS family felt that the ownership of shares in various companies/ businesses should align and synchronize with the management of the respective companies,” said Chairman and MD, TVS Motor Company in exchange filing. TVS family has agreed to subscribe to the terms of a memorandum of family arrangement in order to record the terms of the family arrangement.”
Sundaram-Clayton Ltd. owns 57.40 per cent in TVS Motor Company Ltd, promoter firm managed by family members holds 75 per cent in the former company. T V Sundaram Iyengar & Sons Ltd, Sundaram Industries Pvt Ltd, Southern Roadways Pvt Ltd and Sundaram Finance Holdings Ltd. are the promoters firms which own 18.82 per cent, 29.96 per cent, 14.98 per cent and 11.24 per cent, respectively in Sundaram-Clayton Ltd. According to letter state to BSE, Senior members of TVS family will now deliberate on how to best implement this arrangement.