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HDFC Mutual Fund Acquires 0.65% Stake in Sundram Fasteners for ₹137 Crore via Open Market Deal.

Economy Business | Dated: 01 Jul 2025

HDFC Mutual Fund, a subsidiary of HDFC Asset Management Company (AMC), recently purchased 13.70 lakh equity shares of Sundram Fasteners Ltd in June 2025, equating to a 0.65% stake. The ₹137.02 crore investment was carried out through an open market transaction at an average share price of ₹1,000, raising HDFC MF’s total holding in the company from 4.27% to 5.02%.

🎯 Key Highlights:

  • - Sundram Fasteners Ltd, headquartered in Chennai, Tamil Nadu, is a major automotive component supplier under the TVS Group. Founded in 1966, the company has grown to become a leading manufacturer for both domestic and global automotive original equipment manufacturers (OEMs), with a strong reputation for innovation, engineering, and diversified product lines.
  • - The company’s product portfolio spans fasteners, powertrain components, sintered metal products, radiator caps, cold extruded parts, water pumps, oil pumps, and wind energy components. It also maintains a robust international presence with manufacturing units in India, China, and Europe, and serves clients across North America and European markets.

💡 Other Important Facts:

  • (i) HDFC MF’s strategic investment comes amid a broader recovery in India’s auto ancillary sector, which is being driven by rising electric vehicle (EV) production and a global shift towards diversified, resilient supply chains. Sundram Fasteners’ strong balance sheet, export capability, and investments in R&D position it well to benefit from sectoral tailwinds.
  • (ii) In a related market event, Singapore-based Cube Mobility Investments offloaded a 0.59% stake (approximately 79.25 lakh units) in Cube Highways Trust—an infrastructure investment trust (InvIT) based in Noida, Uttar Pradesh—for ₹101 crore at ₹127.50 per unit.
  • (iii) Cube Highways Trust, which invests in toll roads and highway assets, remains attractive to long-term institutional investors seeking stable returns through InvITs.

📚 Test Your Knowledge:

Recently, which mutual fund acquired a 0.65% stake in Sundram Fasteners Ltd for ₹137 crore?

Correct Answer: HDFC Mutual Fund

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