TVS Emerald to Acquire Radial Phase II, III IT Parks for ₹576 Crore.

TVS Emerald, a subsidiary of TVS Holdings Ltd, has announced the acquisition of Radial (Phase II) IT Park Pvt Ltd and Radial (Phase III) IT Park Pvt Ltd for a total of ₹576 crore.

The company will acquire 100% of the equity shares and compulsorily convertible debentures of both companies. Specifically, TVS Emerald will purchase 43.59 lakh equity shares and 7.25 lakh compulsorily convertible debentures of Radial Phase II for ₹234 crore. Additionally, it will acquire 55.06 lakh equity shares and 10 lakh compulsorily convertible debentures of Radial Phase III for ₹342 crore, as per a filing with the National Stock Exchange.

The acquisition is expected to enable TVS Emerald to expand its market reach, enhance its business capabilities, and drive revenue growth.

Radial Phase II and III IT Parks, both focused on construction and development, reported minimal financial activity for FY 2023-24. Radial Phase II registered a loss after tax of ₹0.21 crore and a net worth of ₹86 crore, while Radial Phase III posted a loss of ₹0.37 crore and a net worth of ₹108.60 crore.

TVS Emerald entered into two Share Purchase Agreements (SPAs) on December 17 for the acquisition. Upon completion, both IT parks will become wholly owned subsidiaries of TVS Emerald and, in turn, step-down subsidiaries of the parent company.

HBL