TVS Motor Company on Monday acquired an additional 4.39% stake in its subsidiary, TVS Credit Services, from Lucas-TVS for ₹711 crore, increasing its ownership to 85.15% from 80.76%.
“The acquisition is proposed to consolidate the Company’s stake in TVS CS by acquiring the shares held by the other shareholders and is expected to streamline ownership and facilitate operational efficiencies,” TVS Motor said in an exchange filing.
The acquisition comes days after TVS Motor said it would evaluate options, including a possible separation of its financial services business, to unlock shareholder value.
“The company may at an appropriate time, in stages, guided by long-term strategic considerations, evaluate alternatives including a possible separation of the financial services business to further strengthen and unlock shareholder value,” Chairman and Managing Director Sudarshan Venu said during the company’s 34th Annual General Meeting last week.
TVS Credit Services is a non-deposit-taking NBFC that offers a range of lending products, including automobile finance, consumer durable loans and small business loans. For the year ended March 31, 2026, the company reported revenue of ₹7,191 crore, profit after tax of ₹913 crore and a net worth of ₹6,068 crore.