Sundaram Finance Approves Acquisition of Capitalgate Advisors
Filing Summary
Sundaram Finance Limited has announced the in-principle approval for the acquisition of Capitalgate Investment Advisors Private Limited by its wholly-owned subsidiary, Sundaram Alternate Assets Limited. The acquisition, valued at ₹35 crore, involves a cash consideration and is classified as a related party transaction. The acquisition is expected to be completed within one month, subject to regulatory approvals. Capitalgate Investment Advisors operates in the financial services sector, focusing on credit research for fixed income securities. This acquisition aims to integrate Capitalgate’s research capabilities with Sundaram’s existing operations.
Sundaram Finance Limited has informed the Bombay Stock Exchange about the Board of Directors’ in-principle approval for the acquisition of Capitalgate Investment Advisors Private Limited by Sundaram Alternate Assets Limited (SAAL). SAAL is a wholly-owned subsidiary of Sundaram Asset Management Company Limited, which is itself a wholly-owned subsidiary of Sundaram Finance Limited. The acquisition will be followed by the proposed amalgamation of Capitalgate Investment Advisors with SAAL, pending necessary regulatory approvals.
The acquisition involves a cash consideration of ₹35 crore. The transaction is classified as a related party transaction for SAAL, and it has been confirmed that the transaction is conducted at arm’s length. The Audit Committee of Sundaram Finance Limited has granted prior approval for this transaction under Regulation 23(2)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as the transaction value exceeds 10% of SAAL’s standalone turnover for the financial year ended March 31, 2025.
Capitalgate Investment Advisors operates in the financial services sector, providing credit research on listed fixed income securities. The company has been developing an AI engine capable of delivering real-time research to users. This capability is expected to add value to Sundaram Alternate Assets’ funds business. The acquisition will allow Sundaram to integrate Capitalgate’s research capabilities with its existing operations, enhancing its service offerings to high-net-worth individuals, corporate treasuries, pension funds, and insurance companies.
Capitalgate Investment Advisors Private Limited was incorporated on September 14, 2017, under the Companies Act, 2013. The company specializes in credit research for fixed income securities, serving a client base that includes investors in Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) managed by Sundaram Alternates.
Sundaram Finance Limited is a prominent player in the financial services industry, focusing on asset management, insurance, and financial advisory services. The company is committed to expanding its service offerings and enhancing its market presence through strategic acquisitions and partnerships.