TVS Motor Company crossed Rs 1 lakh crore market capitalisation on Friday as its shares jumped over 4% after the motorcycle company announced acquiring a 28.57% stake in the Indian Foundation for Quality Management (IFQM) for Rs 25 crore.

TVS Motor’s shares jumped to an intraday high of Rs 2,186, 4.44% higher than its previous closing price on the National Stock Exchange (NSE). At 3 pm, the stock was trading 1.96% higher at Rs 2,134.15.

According to the company’s exchange filing dated February 16, TVS Motors acquired a 28.57% stake of total shareholding in the Indian Foundation for Quality Management by subscribing to newly issued shares. 

TVS Motors would acquire 2.5 crore equity shares of Rs 10 each, aggregating to Rs 25 crore. IFQM will complete the allotment of shares on or before April 15, 2024, i.e. within 60 days of receipt of the subscription amount. 

The investment is a related party transaction and is being done at arm’s length. TVS Motor’s Managing Director Venu Srinivasan is also a director of IFQM.

Incorporated on September 6, 2023, IFQM is a not-for-profit company which aims to be an integrated, empowered foundation and empowering and encouraging Indian organisations in diverse sectors to embrace and integrate quality values, principles, and practices in all aspects of management to drive positive change in the industry.