Sundaram-Clayton to divest aluminium die-casting bizz

20 Feb 2025 , 03:04 PM

The auto components manufacturer Sundaram Clayton has announced that it is planning to divest its aluminium die-casting businesses at its Hosur facility. The company’s board of directors approved the decision in its meeting held on February 19. 

In a filing with the bourses, the company stated that both its high-pressure and low-pressure aluminium die-casting operations at Hosur will be purchased by third-party buyers. However, the company has not yet disclosed material details of the transaction such as structure, identity of buyers, and financial terms.

The auto company stated that the definitive agreements will take place in the due course. The transaction is subject to regulatory and other necessary approvals. Further, the company will make necessary disclosures as the process will move forward.

The company deals in aluminium die-casting for both domestic and global markets.

Sundaram Clayton was renamed on June 16, after the merger of TVS Holding Pvt. Ltd. with SCL. Currently, TVSH holds a 50.26% stake in TVS Motor Company, being a promoter.

The company specializes in high-pressure die-casting, that is suitable for high-volume, complex production, and low-pressure die-casting, suitable majorly for structurally critical components.

At around 2.56 PM, Sundaram Clayton was trading 0.47% higher at ₹2,444.95 per share, against the previous close of ₹2,433.45 on NSE. The counter touched an intraday high and low of ₹2,555.55, and ₹2,425.35, respectively.

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