Suresh Krishna, Chairman of Sundram Fasteners, is set to see his eldest daughter, Preethi Krishna, divest a portion of her shares in the company’s holding firm. Preethi, who resides in the US and is 59 years old, is a fourth-generation member of the renowned TV Sundram Iyengar family. Her decision to sell some of her stake is interpreted as a move towards stepping away from the family business.
The shares will be purchased by her father, mother Usha Krishna, and her two sisters, Arathi Krishna and Arundathi Krishna, thus strengthening their collective ownership in the holding company. To fund this transaction, the family will sell shares of Sundram Fasteners worth Rs 400 crore to institutional investors, including funds from the West Asia region.
After the sale, Preethi’s holding in TVS Sundram Fasteners will decrease from 20% to approximately 14-15%. Currently, Suresh, Usha, Arathi, and Arundathi each hold 20% stakes in the holding company, which controls 48% of Sundram Fasteners, valued at Rs 28,000 crore. The four family members plan to offload a 1.5% stake in Sundram Fasteners through a block deal to foreign investors, raising Rs 400 crore to facilitate their purchase of Preethi’s stake in the holding company.
Preethi, although a director at the company, does not actively participate in its operations unlike her sisters, Arathi (55), the Managing Director, and Arundathi (50), the Joint Managing Director. Preethi’s 20% stake in TVS Sundram Fasteners is managed through a trust controlled by her husband, Ram Sundaram, a former executive at Goldman Sachs. Attempts to reach Ram Sundaram and Suresh Krishna for comments were unsuccessful.
Historically, Sundram Fasteners was part of the larger TVS Group, but the conglomerate’s various business units are now separately managed by different family members as per a business separation agreement. For example, Suresh’s cousin, Venu Srinivasan, oversees TVS Motor and Sundaram Clayton. In cases where a family member exits a common holding company that controls a listed entity, it becomes complex as it requires the agreement of all shareholders of the holding company, creating liquidity challenges for the exiting shareholder.
Sundram Fasteners is a leading Indian manufacturer specializing in automotive and industrial fasteners. Known for its high-quality products, the company serves diverse sectors, including automotive, aerospace, and industrial equipment. With a strong market presence and a commitment to innovation, Sundram Fasteners operates under the TVS Group and boasts a significant shareholding in the Indian market.
