TVS Holdings Ltd on Monday (September 16) said it has acquired a 100% stake in TVS Digital Ltd, formerly known as TVS Housing Ltd, for ₹4.14 crore.

“…we wish to inform that the company has acquired a 100% stake in TVS Digital Limited (formerly known as TVS Housing Limited) (“TVS Digital”), a step-down subsidiary company, by way of purchase of shares from TVS Motor Company Limited, a subsidiary of the company,” the company said in a stock exchange filing.

The acquisition was made by purchasing shares from TVS Motor Company Ltd, a subsidiary of TVS Holdings, for a cash consideration of ₹4.14 crore. With this acquisition, TVS Digital has become a wholly-owned subsidiary of TVS Holdings.

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TVS Digital, headquartered in Chennai, operates in the information technology services sector. In FY 2023-24, it generated a turnover of ₹3.85 crore and a profit after tax of ₹0.27 crore.

This related party transaction was conducted at arm’s length, supported by a valuation report. The acquisition aligns with TVS Holdings’ strategy to consolidate non-automotive investments under its portfolio.

TVS Holdings, erstwhile Sundaram Clayton Ltd SCL, is an auto components manufacturer, based in Chennai and part of the TVS Group. It makes aluminium and magnesium castings for the automotive industry. SCL was the flagship company of the TVS Group before being overtaken by its subsidiary, TVS Motor Company.

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Shares of TVS Holdings Ltd ended at ₹14,205, down by ₹49.80, or 0.35%, on the BSE.