Venu Srinivasan, chairman and managing director of TVS Motor Company, has bought a minority stake in the country?s third largest motor cycle maker for the first time in his personal capacity. In the quarter ended December 31, 2010, he was not holding any shares in the company on his individual capacity, according to the company filings with regulators.
Significantly, it is with Venu Srinivasan in the driving seat that TVS Motor Company, formerly known as TVS Suzuki, hit the high lane of growth and became the third largest motor cycle maker in the country. TVS had later bought out its foreign partner the Suzuky Motor Corporation of Japan in the joint venture. TVS is a over hundred years old family run business group with interests in two-wheelers to transport.
TVS Motors, in two different regulatory filings with stock exchanges, said that Srinivasan had bought 28,20,000 shares of the company since the December quarter from the open market. This translates into 0.59% of the company’s outstanding stock as of the closing of trade on February 14, 2011.
Further, the company said in another filing that Venu Srinivasan had picked up an additional 2,50,072 shares of TVS Motors from the open market in two tranches from BSE and the NSE at a price of Rs 53.72 per share. He had bought 1,79,160 shares of TVS Motors from the National Stock Exchange and another 70,912 shares from the Bombay Stock Exchange. The fresh buy has taken Venu Srinivasan’s individual shareholding in the company to a tad lower than 1%, the company filings said.
The TVS Motors stock is currently trading at Rs 56 level and on Thursday the scrip closed on BSE at Rs 56.05, up by 0.27%. The stock has a face value of Re 1 and had hit a 52-week high of Rs 87.45 on November 25, 2010 and a 52-week low of Rs 29.40 on 24 February, 2010.
The company had clocked a net sales of Rs 1,613.46 crore and clocked a net profit of Rs 55.75 crore for the quarter ending December 2010. The company had a paid-up equity capital of Rs 47.51 crore as of the quarter ending December last.
Promoter entities, Sundaram Clayton, Anusha Investments and TVS Motor Harita Employees Welfare Foundation, togather control 59.31% stake in the company. The other major stakeholders in the company are LIC (5.47%) and Mrgan Stanley (1.15%).
