Billionaire investor Radhakishan Damani appears to have put his faith and money in two Chennai-based corporate houses.
If they have beefed up their stake in N Srinivasan-led The India Cements Ltd (ICL), they have put their money in one of the strongest and highly respected non-banking finance companies (NBFCs), Sundaram Finance Ltd (SFL), too. Significantly enough, they also have an equity presence in Sundaram Finance Holdings Ltd (SF Holdings), which is the holding company of the TS Santhanam wing of the TVS group. The four families comprising the TVS group have recently separated legally and chosen to go their separate ways.
The Damanis – Radhakishan S Damani, Shivkishan Damani and Gopikishan Damani – together held over 21 percent stake in The India Cements (6,54,98,190 shares) at the end of December 2021 (as per the filing with the stock exchanges). Though the Damanis have quietly upped their holdings, their investment is viewed as a big positive by the cement major from the south. By virtue of their holdings in The India Cements, the Damanis should also be holding some stake in Chennai Super Kings (CSK), the Indian Premier League (IPL) franchise, which was spun off into a separate company by The India Cements a few seasons ago.
The Damanis held 2.37 percent stake (26,30,434 shares) in SFL at the end of December 2021, according to a filing with the stock exchange. Their holding in SFL is done through Bright Star Investments Pvt Ltd, their investment arm. Significantly enough, they have parked money in the listed holding company of the TS Santhanam wing, i.e. SF Holdings. In SF Holdings, too, the Damanis have invested through Bright Star Investments. It held an equity stake of 1.88 percent at the end of December 2021. Bright Star had, in fact, increased the stake from 1.74 percent in March 2021.
The shares of SFL closed at Rs 2,096.40 on April 12 on the BSE. The shares of SF Holdings closed at Rs 75.15 on the NSE. The shares of The India Cements closed at Rs 225.05 on the BSE.
Significantly enough, the Damanis appear to have a long-term perspective of their investment in these Chennai-based companies. Sources say, there seems to be a definite method in the way they have chosen their picks in Chennai.
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