Sundaram Clayton shares gain 4% after board approves ₹400 cr fundraise

In a filing to the stock exchanges, the company said that its Board has given a go ahead to raise funds in one or more tranches via equity.

The company informed the bourses that at the meeting held on July 3, the Board of Directors approved the proposal to raise funds not exceeding ₹ 400 crore.

According to the release, the fundraise could be carried out by issuing equity shares of face value of ₹ 5 each or any other eligible securities or any combination. The company might also consider raising funds via a preferential issue, further public offer, qualified institutions placement (QIP), or any other permissible mode or through a combination of the modes.

The automotive component maker informed the exchanges, via a separate release on July 3, that it will seek the consent of shareholders through a Postal Ballot for raising funds. Sundaram Clayton also mentioned in the release that it is seeking shareholder approval for the appointment of P Kaniappan as a Non-Executive Independent Director of the Company for a term of five consecutive years effective July 3.

Sundaram Clayton, a flagship company of the TVS group, manufactures and supplies aluminium cast products to global automotive Original Equipment Manufacturers (OEMs). The company has three manufacturing units located in Chennai and Hosur in Tamil Nadu. According to the company, 40% of its products are currently exported to countries like the United States, Sweden, and Germany.

Sundaram Clayton shares closed 9.3% higher at ₹1,680 apiece on the NSE.