Sundaram Finance gains 2% on reports to acquire BNP stake

Following the acquisitions, the two joint ventures would become a wholly owned subsidiary of Sundaram Finance.

Jun 21, 2019 07:06 IST India Infoline News Service

Shares of Sundaram Finance were trading 2% higher on Friday after media reports stated that the company is all set to acquire stakes held by BNP Paribas in their two joint venture companies for a total consideration of ~Rs1,000cr.

As per media reports, the entire 49% equity stake held by BNP Paribas Securities Servies in Sundaram BNP Paribas Fund Services Ltd would be acquired for Rs1.5cr. The acquisition will be subject to necessary regulatory approval, reports said.

Similarly, the 49.9% stake of BNP Paribas Personal Finance in Sundaram BNP Paribas Home Finance Limited would be acquired for about Rs999.66cr, reports.

The sum of total acquisitions is around Rs1,000cr. Following the acquisitions, the two joint ventures would become a wholly owned subsidiary of Sundaram Finance.

Sundaram Finance Ltd is currently trading at Rs1,570 up by Rs37.2 or 2.43% from its previous closing of Rs1,532.80 on the BSE.
The scrip opened at Rs1,560 and has touched a high and low of Rs1,588 and Rs1,560 respectively. So far 43,724 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs17,029.41cr.

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