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Sundaram-Clayton to demerge auto parts biz

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Sundaram-Clayton, an auto component manufacturer and holding company of TVS Motor Company, has proposed a demerger of its auto parts manufacturing business and return of excess cash to its shareholders. The excess cash of the company will be distributed to shareholders by issuing fully paid-up listed NCPRS by way of bonus. It will issue 116 non-convertible redeemable preference shares (NCRPS) of INR 10 each fully paid-up of the company for every equity share. The NCRPS will be listed on the BSE and the National Stock Exchange. Sundaram-Clayton has proposed to reorganise and segregate the businesses of manufacturing non-ferrous gravity and pressure die castings from its other businesses as it will enable an enhanced focus on each of the businesses and will further unlock value for the shareholders. As part of the overall restructuring exercise, it is also proposed to consolidate promoter holding entities with the company by way of merger. The proposed rearrangement scheme involves the amalgamation of TVS Holdings Ltd and VS Investments Pvt Ltd with Sundaram-Clayton Ltd.