SFL to demerge non-financial service investments into subsidiary

Board members have also approved private placement of non-convertible debentures worth Rs 7,500 cr

Sundaram Finance Ltd (SFL) is planning to demerge its non-financial services investments into a wholly owned subsidiary to ring-fence the regulated financial services assets of the group.

The company said on Friday that the Board of Directors has approved a proposal to demerge its non-financial services investments into Sundaram Finance Investments Ltd (SFIL).

The demerger process is initiated through a composite scheme of arrangement as per the regulatory requirements.

Over nearly six decades, SFL has invested in various non-financial service businesses, including the automotive and manufacturing business as a co-promoter along with the TVS Group. Some of the significant investments made during