Sundaram Finance Holdings Ltd

Sundaram Finance Holdings Limited is a Public Limited Company incorporated in August 11, 1954. The Company is registered as Non-Banking Finance Company (Deposit taking) with Reserve Bank of India and primarily engaged into the business of financing of commercial vehicles, cars, construction equipment and other vehicles in the retail segment. During the year 2015, the Company credited an amount of Rs.256.56 crore to the Capital Reserve which pertains to the sale of 17,37,012 equity shares of the Company, held by SFL Shares Trust. The Company received the proceeds, being the sole beneficiary of the Trust. These shares accrued to the Trust on account of the merger of Lakshmi General Finance Limited with the Company, in the year 2005. During the year 2015, the Company mobilized fresh deposits aggregating to Rs.414.35 crore. Renewal of deposits during the year amounted to Rs.629.81 crore, representing 84% of the matured deposits of Rs.742.36 crore. During the year 2015, the Company raised term funding from Banks, Mutual funds, Insurance companies and others in the form of non-convertible debentures and term loans to the tune of Rs.3878 crore, across various tenors. As part of the overall funding plan, the Company's working capital limits with Consortium banks were retained at Rs. 1800 crore. During the year 2015, the Company also issued several tranches of commercial paper aggregating to Rs.8216 crore.During the year 2015, the Company raised resources to the extent of Rs.1323 crore through securitisation and assignment of hypothecation loan receivables.During the year 2015, Sundaram Parekh Warehousing Services Limited, a wholly owned subsidiary of Infreight Logistics Solutions Limited, which is a wholly owned subsidiary of Sundaram Finance Distribution Limited (SFDL), merged with Infreight, under a Scheme of Amalgamation under Section 391 to 394 of the Companies Act, 2013, effective 1st April 2014. During the year 2015, the Company and RSA Group, UK, reached an agreement whereby RSA agreed to sell its entire 26% equity stake in Royal Sundaram Alliance Insurance Company (RSAIC), a joint venture, to the Company for a consideration of Rs 450 crore, subject to all regulatory approvals. The Company currently holds 49.90% in Royal Sundaram and the said acquisition would increase its holding to 75.90%. During the year 2016, the Company mobilised fresh deposits aggregating to Rs 491.41 crore. Renewal of deposits during the year amounted to Rs 690.31 crore, representing 83% of the matured deposits of Rs 838.40 crore. During the year 2016, the Company raised term funding from Banks, Mutual funds, Insurance companies and others in the form of non-convertible debentures and term loans to the tune of Rs. 2222 crore, across various tenors. During the year 2016, the Company also issued several tranches of commercial paper aggregating to Rs.9835 crore. During the year 2016, the Company acquired 8,19,00,000 equity shares of Royal Sundaram Alliance Insurance Company Limited from Royal & Sun Alliance Insurance PLC for a total consideration of Rs 450 crore, raising the Company's shareholding in Royal Sundaram from 49.90% to 75.90%. Consequently, Royal Sundaram became a subsidiary of the Company and the company's name was changed to Royal Sundaram General Insurance Co. Limited.During the year 2016, the Company's paid-up capital was reduced from Rs 94.50 crore to Rs 24 crore in accordance with the Scheme of Capital Reduction approved by the Hon'ble High Court of Judicature at Madras. During the year 2016, the Company sold its entire holdings of 49.90% in BNP Paribas Sundaram Global Securities Operations Private Limited to the joint venture partner, BNP Paribas Securities Services, Paris, for a total consideration of Rs 44.30 crore. During the year 2016, the Company raised resources to the extent of Rs 2998 crore through securitisation and assignment of receivables. During the year 2017, the Company raised term funding from Banks, Mutual funds, Insurance companies and others in the form of non-convertible debentures and term loans to the tune of Rs.3554 crore, across various tenors. During the year 2017, the Company raised resources to the extent of Rs.3999 crore through securitisation and assignment of receivables. During the year 2017, the main objects clause in the Memorandum of Association of the company was amended,with a view to engage in the business of investments and the name of the Company was changed from Sundaram Finance Distribution Limited' to Sundaram Finance Investments Limited'and subsequently, to Sundaram Finance Holdings Limited'. During February 2017, the paid-up share capital of the company was increased from Rs.50 lakhs to Rs.20 crore by way of a rights issue of 1,95,00,000 equity shares of Rs.10/- each. The Board of Directors, at the meeting held on 25th November 2016, approved a draft Scheme of Amalgamation of Sundaram Infotech Solutions Limited (SISL) with the Company with effect from the Appointed Date, i.e. 1st April 2016. The Company has received the no-objection' letter from National Stock Exchange of India Limited for draft Scheme and steps have been taken to file the application with the National Company Law Tribunal in accordance with the provisions of Section 232 read with Section 230 and other applicable provisions of the Companies Act, 2013. Pursuant to the sanctioning of the Composite Scheme of Arrangement and Amalgamation (Scheme) by the Hon'ble National Company Law Tribunal (NCLT), Division Bench, Chennai, vide Order dated 12th January 2018, received by the Company on 18th January 2018, the following matters, as envisaged in the Scheme with effect from the Appointed Date', i.e., 1st April 2016, have become operative:a. Amalgamation of Sundaram Insurance Broking Services Limited and Infreight Logistics Solutions Limited, wholly-owned subsidiaries, with the Company; b. De-merger of the shared services business of Sundaram BPO India Limited (Sundaram BPO), subsidiary, into the Company; and c. De-merger of the non-core business of the Company, viz. training services, identified shared services including shared services vested from Sundaram BPO, apart from the non-financial services investments, together with related assets, into Sundaram Finance Holdings Limited (SFHL). As provided in the Scheme, on 12th February 2018, all the shareholders of the Company were allotted 1 equity share of Rs 5/- each credited as fully paid-up in the capital of SFHL for every 1 fully paid-up equity share of Rs 10/- held by them in the Company as on the record date, i.e., 2nd February 2018. Pursuant to the said allotment, the shareholding of the Company in SFHL got reduced from 100% to 26.47% and SFHL became an associate of the Company. The equity shares of SFHL were listed on the National Stock Exchange of India Limited with effect from 26th March 2018. During the year 2018, the Company mobilised fresh deposits aggregating to Rs 450.53 crore. Renewal of deposits during the year amounted to Rs 943.44 crore, representing 79% of the matured deposits of Rs 1170.48 crore. During the year 2018, the Company raised term funding from Banks, Mutual funds, Insurance companies and others in the form of non-convertible debentures and term loans to the tune of Rs 5545 crore, across various tenors. During the year 2018, the Company raised resources to the extent of Rs 3879 crore through securitisation and assignment of receivables. During the year 2019, the Company mobilised fresh deposits aggregating to Rs 701.52 crore. Renewal of deposits during the year amounted to Rs 980.71 crore, representing 85% of the matured deposits of Rs 1150.27 crore.During the year 2019, the Company raised term funding from Banks, Mutual funds, Insurance companies and others in the form of non-convertible debentures and term loans to the tune of Rs 7014 crore, across various tenors. During the year 2019, the Company raised resources to the extent of Rs 3236 crore through securitisation and assignment of receivables. Read More