Sundaram Finance Holdings Limited (SFHL) has announced plans to acquire 24.16% of the equity share capital in Axles India Limited for a total consideration not exceeding INR 1.83 billion. The transaction involves the purchase of 6,158,208 equity shares at INR 296.65 per share from Dana Global Products Inc., a foreign promoter of Axles India.
Following the acquisition, SFHL’s shareholding in Axles India will increase from 38.82% to 62.98%, resulting in Axles India becoming a subsidiary of SFHL. The acquisition is expected to be completed on or before April 30, 2025, pending the execution of a definitive Share Purchase Agreement and other customary closing conditions. The deal is being conducted on a cash basis and does not constitute a related party transaction.
Axles India manufactures axle housings for a range of medium and heavy commercial vehicles. For the financial year ending March 31, 2024, the company reported total revenue of INR 8.55 billion. It has shown consistent growth in turnover over the past three years, with revenues of INR 8.54 billion in 2023–24, INR 7.46 billion in 2022–23, and INR 5.70 billion in 2021–22.
Axles India was established in 1982 as a joint venture with Eaton. Dana Holding Corporation acquired Eaton’s axle business in 1998, including its stake in Axles India. The company continues to operate as a joint venture among Wheels India, SFHL, and Dana Holding Corporation.