TVS Motor jumps 6%, near its 52-week high after huge block deal
Shares of TVS Motor Company rose 6 percent to Rs 662.85 on the National Stock Exchange (NSE) in intraday trading on Monday after more than five percent of the two-wheeled company (2-W) shares were changed hands via a block agreement. The stock was trading near its 52-week high of Rs 666 reached on May 27, 2021.
About 24.4 million shares, representing 5.13% of the total share capital of TVS Motor Company, valued at Rs 1,506 crore, changed hands via a block deal on the NSE, according to data from the ‘exchange. The bulk trade was executed at a price of Rs 617.25 per share, according to the data.
However, the names of the buyers and sellers were not immediately determined.
At 9:34 am, TVS Motor was trading 5% more at Rs 654 on the NSE, against a 0.24% increase in the Nifty50 index.
TVS Motor Sundaram promoter Clayton owns a 57.40% stake in the company. TVS is the only player in India present in all forms of 2W – scooter, motorcycle, mopeds and electric vehicles. The company has been successful in establishing brands like Apache, Jupiter, Ntorq, etc. which have enabled it to gain market share in the past five years.
In December 2020, the board of directors of the $ 8.5 billion TVS group holding companies approved the so-called Family Arrangement Memorandum (MFA) between various members of the TVS family. The current shareholders of the holding companies are mainly third and fourth generation family members of the founder of the TVS group, TV Sundaram Iyengar.
In February 2021, the group filed a composite merger and arrangement plan involving its holding companies with the National Company Law Tribunal in Chennai.
The restructuring will give each family group full ownership of the businesses they manage while eliminating the holding company. Under the new conditions, the family agreed to remove all cross-ownership. Share buybacks between family members have already started.
The restructuring will involve nine listed companies, including TVS Motor, Sundaram Clayton, Sundram Fasteners, TVS Electronics and TVS Srichakra, among others. Family members will buy back shares in their companies’ TVS holding companies. This arrangement will not include Sundaram Finance as it is already separate from the holding companies. CLICK HERE FOR THE FULL REPORT