News ArticleSundaram Finance Limited to Acquire Entire Stake in Sundaram Alternate Assets Limited at Cost up to ₹75 Crore
Acquisition simplifies subsidiary structure; completion targeted by March 31, 2027, pending SEBI regulatory approvals
Sundaram Finance Limited has approved the acquisition of 100% equity stake in its step-down subsidiary, Sundaram Alternate Assets Limited, from Sundaram Asset Management Company Limited, aiming to simplify the group structure. The acquisition is valued up to ₹75 crore in cash and is expected to complete by March 31, 2027, subject to regulatory approvals under SEBI regulations.
Sundaram Finance Limited
Acquisition / Amalgamation / Merger / Demerger
Sundaram Finance Limited has approved the acquisition of 100% equity shares in Sundaram Alternate Assets Limited from its existing wholly-owned subsidiary, Sundaram Asset Management Company Limited, for up to ₹75 crore in cash. The move will make Sundaram Alternate Assets Limited a direct wholly-owned subsidiary of Sundaram Finance Limited, streamlining the group’s shareholding structure.
The acquisition involves transferring 3,90,53,158 equity shares of ₹10 each held by Sundaram Asset Management Company Limited (SAMCL) in Sundaram Alternate Assets Limited (SAAL) to Sundaram Finance Limited (SFL).
SAAL operates in the Alternate Investment Fund and Portfolio Management Services industry catering to high-net-worth individuals and institutional clients within India. The company reported revenues of ₹15,340.66 lakh and a profit after tax of ₹2,569.45 lakh for fiscal year 2025-26.
This is a related party transaction between SFL and its wholly-owned subsidiary SAMCL, conducted at arm’s length and not requiring Audit Committee approval per SEBI regulations.
The acquisition requires regulatory approvals from the Securities and Exchange Board of India under mutual fund, portfolio manager, and alternative investment fund regulations.
SFL anticipates completing the acquisition by March 31, 2027, with the cash consideration not exceeding ₹75 crore, excluding applicable taxes and charges.
Highlights
- SFL will acquire 100% stake in SAAL held by SAMCL, involving 3,90,53,158 shares of ₹10 each.
- Transaction is a related party deal done at arm's length and does not require Audit Committee approval.
- SAAL reported ₹15,340.66 lakh revenue and ₹2,569.45 lakh PAT for FY 2025-26 (unaudited figures as of September 30, 2026).
- Acquisition requires approvals under SEBI Mutual Fund, Portfolio Managers, and Alternative Investment Funds regulations.
- Estimated acquisition cost capped at ₹75 crore cash, excluding taxes and stamp duties.
- Expected completion date is March 31, 2027.
Key Data Snapshot
What happened
- Sundaram Finance Limited approved acquisition of entire shareholding in Sundaram Alternate Assets Limited from SAMCL.
- The acquisition will convert SAAL from a step-down subsidiary to a direct wholly-owned subsidiary of SFL.
- The transaction is a related party deal but done on arm’s length basis.
- Completion is subject to SEBI regulatory approvals and targeted by March 31, 2027.
Key details
- SAAL is engaged in alternate investment fund management and portfolio management services targeting HNI, UHNI, family offices, and institutions in India.
- The acquisition involves 3,90,53,158 equity shares of ₹10 each currently held by SAMCL.
- SFL will pay up to ₹75 crore in cash consideration excluding applicable stamp duty, taxes, and other charges.
- Approvals required from SEBI under Mutual Fund, Portfolio Managers, and Alternative Investment Fund regulations as applicable.
Background and context
- Sundaram Alternate Assets Limited was incorporated on January 24, 2018, as an Indian company.
- SAAL’s revenue and profit have grown over the last three years, with revenue rising to ₹15,340.66 lakh and PAT to ₹2,569.45 lakh in FY 2025-26.
- The acquisition aims to simplify the group’s shareholding structure by removing the intermediate holding company, SAMCL, for SAAL.
Highlights
- SFL will acquire 100% stake in SAAL held by SAMCL, involving 3,90,53,158 shares of ₹10 each.
- Transaction is a related party deal done at arm's length and does not require Audit Committee approval.
- SAAL reported ₹15,340.66 lakh revenue and ₹2,569.45 lakh PAT for FY 2025-26 (unaudited figures as of September 30, 2026).
- Acquisition requires approvals under SEBI Mutual Fund, Portfolio Managers, and Alternative Investment Funds regulations.
- Estimated acquisition cost capped at ₹75 crore cash, excluding taxes and stamp duties.
- Expected completion date is March 31, 2027.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- SEBI (Mutual Fund) Regulations, 2026
- SEBI (Portfolio Managers) Regulations, 2020
- SEBI (Alternative Investment Funds) Regulations, 2012
Acquisition is a related party transaction between Sundaram Finance Limited and its wholly-owned subsidiary Sundaram Asset Management Company Limited, conducted at arm’s length.
Mr. Harsha Viji, Executive Vice-Chairman and promoter group member, is chairman of SAAL and has directorship interest in the entity acquired.
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