FII bought 22,28,480 shares and Rs 750 crore capex: This multibagger auto ancillary company signs MoU with the Government of Tamil Nadu for Rs 1,411 crore investment!

Shares of the company have gained more than 25 per cent in the last one year.

Sundram Fasteners, a global automotive supplier, is accelerating its presence in Tamil Nadu with a hefty investment of Rs 1,411 crore. This strategic move, announced at the Tamil Nadu Global Investors Meet 2024, will span eight existing factories across the state, including the Mahindra World City SEZ, aligning perfectly with both Industrial and EV policies.

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The multi-year investment, stretching to 2027-28, fuels Sundram's expansion plans for current products and ventures into components for electric vehicles. This significant boost not only highlights the company's continued growth trajectory but also underscores Tamil Nadu's thriving investment climate, particularly in the burgeoning EV sector.

This strong performance comes with a planned capex of Rs 750 crore in FY24 and 2025, focusing on new product development, especially for EV technology. With this strategic investment and continued financial performance, Sundram Fasteners is poised for a dynamic future in the ever-evolving automotive landscape, particularly in the promising Indian EV market.

Sundram Fasteners Limited has established a track record of leadership over 60 years. With a diversified product line, world-class facilities in 3 countries, and a motivated team of talented people, Sundaram Fasteners has become a supplier of choice to leading customers in the automotive segments worldwide. In September 2023, Kotak Funds - India Midcap Fund bought 22,28,480 shares of the company. FIIs increased their stake in the company in September 2023.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.