For Rs 554.06 crore, TVS Holdings will purchase an 80.74% share in Home Credit India Finance
According to the filing, Home Credit India Finance is a prominent participant in the consumer finance sector, namely in the personal loans area, and operates an unsecured lending company.
For a total consideration of Rs 554.06 crore, TVS Holdings Ltd said on Friday that it will buy an 80.74 percent share in Home Credit India Finance Pvt Ltd.
TVS Holdings said in a regulatory filing that the Board of Directors approved the purchase of 88,09,45,401 equity shares of Home Credit India Finance Pvt Ltd (HCIFPL), or an 80.74 percent stake, from Home Credit India BV, a Netherlands-based company, and Home Credit International AS, a Czech Republic-based company.
It also said that the transaction would cost a total of Rs 554.06 crore.
According to the filing, Home Credit India Finance is a prominent participant in the consumer finance sector, namely in the personal loans area, and operates an unsecured lending company.
In 2022–2023, it had a revenue of Rs. 1,720 crore.
TVS Holdings Ltd. said that this purchase is in line with its plan to grow into the consumer finance industry and bolster its portfolio even further.
It said that HCIFPL will benefit from TVS Holdings Ltd.'s resources and assistance. "HCIFPL will operate as a subsidiary of TVS Holdings Ltd, maintaining its brand identity and autonomy," the statement stated.
According to the filing, the proposed transaction is contingent upon HCIFPL's clearance from the Reserve Bank of India on the change in control and board of directors.
However, in order to finalize the planned acquisition, TVS Holdings must get clearance from the Competition Commission of India in accordance with the Competition Act, 2002.
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