TVS Holdings jumps over 2% on subsidiary's plans to acquire Radial IT Park phase II, III for ₹576.33 crore

TVS Holdings Ltd shares gained over 2% on Wednesday as its subsidiary signed Share Purchase Agreements (SPAs) to acquire two construction companies at a combined cash consideration of ₹576.33 crore. The auto components company informed the stock exchanges on Wednesday that its wholly owned subsidiary, TVS Emerald Ltd (formerly known as Emerald Haven Realty Ltd) has entered into SPAs with sellers to completely acquire two target companies—Radial (Phase II) IT Park Pvt. Ltd and Radial (Phase III) IT Park Pvt. Ltd.

TVS Emerald will acquire 100% equity shares and Compulsorily Convertible Debentures (CCDs) of both the target companies. On completion of the transactions, Radial (Phase II) IT Park and Radial (Phase III) IT Park will become wholly owned subsidiaries of TVS Emerald and step-down subsidiaries of TVS Holdings.

TVS Holdings stated in an exchange notification on December 18, 2024, that the cost of acquiring 100% equity shares and CCDs of Radial (Phase II) IT Park is ₹234.33 crore, while that of Radial (Phase II) IT Park stands at ₹342 crore.

The acquisition of both companies is expected to be completed by December 31, 2024.

Both companies are engaged in the business of construction and development. The acquisition will help TVS Emerald gain access to new markets, increase market penetration and add new capabilities to its existing line of business, thereby maximizing revenue opportunities, the filing added.

As per the agreement, TVS Emerald will acquire 43,58,515 equity shares as well as 7.25 lakh CCDs of Radial (Phase II) IT Park, while acquiring 55,06,650 equity shares and 10 lakh CCDs of Radial (Phase III) IT Park.

Shares of TVS Holdings Ltd closed 0.13% lower at ₹11, 193.05 per piece on the BSE, down from the intraday high of ₹11,450.