TVS Holdings’ Subsidiary to Acquire Two Radial IT Park Firms

TVS Holdings Limited announced that its wholly-owned subsidiary, TVS Emerald Limited, has entered into agreements to acquire 100% equity shares and Compulsorily Convertible Debentures (CCDs) of Radial (Phase II) IT Park Private Limited and Radial (Phase III) IT Park Private Limited.

These agreements, dated 17th December 2024, outline the acquisition of securities for both companies from unrelated sellers. Post-completion, the two entities will become wholly-owned subsidiaries of TVS Emerald and step-down subsidiaries of TVS Holdings.

Financial Details and Market Impact

The acquisition of Radial (Phase II) IT Park Private Limited (Company 1) involves the purchase of 43,58,515 equity shares and 7,25,000 CCDs for a total cost of ₹234.33 crore, with completion expected by December 31, 2024. Despite generating no turnover in FY 2023-24, the company had a net worth of ₹86.21 crore and reported a loss after tax of ₹0.21 crore.

Similarly, the acquisition of Radial (Phase III) IT Park Private Limited (Company 2) entails the purchase of 55,06,650 equity shares and 10,00,000 CCDs at a cost of ₹342 crore, with a net worth of ₹108.60 crore and a loss after tax of ₹0.37 crore in FY 2023-24. The acquisition is expected to be completed by December 31, 2024.

Strategic Benefits

These acquisitions will enable TVS Emerald to strengthen its market presence, access new geographies, and diversify its business capabilities in the construction sector. By leveraging these opportunities, the company aims to maximise revenue potential while reinforcing its foothold in the growing real estate development landscape.

On December 19, 2024, TVS Holdings share price opened at ₹11,200.00, touching the day’s low at ₹11,034.15, as of 9:41 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.