SF Holdings buys out foreign partners’ stakes for Rs 450 cr

SF Holdings primarily owns a portfolio of businesses engaged in various aspects of automotive manufacturing including brakes and turbo chargers as well as distribution of automotive spare parts. 

Significant investments include Sundaram Clayton, Wheels India, IMPAL (all listed) and Brakes India and Turbo Energy (both unlisted) – most of them leaders in their respective markets. 

TT Srinivasaraghavan, Chairman, SF Holdings, said, “The down-turn has given us an opportunity to further consolidate our long-term holdings in our portfolio. We have bought out foreign partners in Wheels India and Brakes India with an investment of Rs 450 crores.” 

The company increased its stake in Wheels India from 13.58% to 23.28%, through an acquisition of an additional 9.70% stake from the foreign partner (Titan Europe) for a total consideration of ₹100 cr. 

The combined holding of the Indian promoters in Wheels India now stands at 57.53%. 

In Q1 this year, SF Holdings completed the acquisition of an additional 7.71% stake in Brakes India for a total consideration of Rs. 350 cr from the foreign partner ZF International, taking its stake from 6.67% to 14.38%. The Indian promoters own 100% of the company. 

SF Holdings also consolidated its shareholding in its foundry portfolio by acquiring a 6.84% stake in Flometallic India Private Limited and consequently the stake in Flometallic has increased from 40% to 46.84%. 

It has registered a net profit of Rs 5.13 crores for the Q1 ended June 30, 2021, an increase of 80% over the Rs 2.85 cr net profit for the corresponding quarter of the previous year. Revenue surged to Rs 10.50 crores for the Q1 ended 30 June 2021, up from Rs. 9.30 crores in the corresponding quarter of the previous year.