TVS Holdings will acquire an 80.7% stake in Home Credit India Finance for Rs 554 crore in a bid to expand its presence in the consumer finance segment, the company announced in an exchange filing on Friday.

The remaining 19.3% of the stake will be purchased by Premji Invest and other associates. Upon signing of a sale and purchase agreement, TVS Holdings and Home Credit India will obtain approvals from the Competition Commission of India and the Reserve Bank of India(RBI) respectively for the transaction.

“We wish to inform that the Board of Directors of TVS Holdings Limited (the “Company”), at its meeting held today, has inter alia, approved the acquisition of 88,09,45,401 equity shares of Home Credit India Finance,” the filing said. 

The acquisition is expected to be completed within six months from the date of execution of the sale and purchase agreement, subject to receipt of necessary regulatory approvals and completion of other conditions precedent.

In a separate press release, TVS Holdings said that the acquisition aligns with the group strategy to play a leading role in deepening the financial penetration in India. Home Credit will operate as a subsidiary of TVS Holdings.

 “Home Credit is a significant player in consumer financing with a lot of potential. Together with TVS Credit, the Group will now have a lending book of ~Rs 31,000 Crore, taking us closer to our book-size goal of Rs. 50,000 Cr in the next three years,” Sudarshan Venu, managing director, TVS Holdings said, adding that the entity will be serving 30 million financial services customers across more than 90,000 touch points across India.

Home Credit India is a local arm of the international consumer finance provider Home Credit N.V. with operations spanning Europe and Asia. Having entered the Indian market in 2012, Home Credit India has an employee base of 3,800 and has spread operations across 625 cities in India.

Also Read

The company has an asset under management of Rs 5,535 crore as on March 31. The company focuses on new-to-credit (NTC) customers, enabling them with consumer durable loans for low-cost smartphones, in addition to personal loans.

The company has generated a turnover of Rs 1,720 crore, and a net profit of Rs 80 crore in 2022-23(April-March).