TVS Motor Company on Wednesday said its financial services subsidiaries have approved a composite scheme of amalgamation under which TVS Housing Finance and Home Credit India Finance will be merged into TVS Credit Services, consolidating the group’s lending businesses under a single entity as it seeks to simplify its corporate structure.
Under the proposed scheme, STPL Trading and Services will first merge with Home Credit India Finance. The enlarged Home Credit entity and TVS Housing Finance will then be amalgamated with TVS Credit Services, which will be the surviving entity. TVS Credit Services is a direct subsidiary of TVS Motor, while Home Credit India Finance is a subsidiary of TVS Holdings. All the entities involved in the scheme are under common control.
The company said the amalgamation is aimed at streamlining the group corporate structure through the consolidation of assets and liabilities, generating operational synergies and supporting long-term sustainable growth. It added that the exercise would simplify the corporate structure by reducing the multiplicity of legal entities and associated regulatory and compliance requirements.
TVS Credit Services, a non-deposit-taking NBFC, offers a range of lending products including vehicle finance, consumer durable loans and small business loans. For the quarter ended June 2026, it reported revenue of ₹1,918 crore, a net worth of ₹6,273 crore and total assets of over ₹35,600 crore.
The restructuring assumes significance as TVS Motor had indicated at its 34th Annual General Meeting that it would evaluate strategic 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 had said.
Last week, TVS Motor acquired an additional 4.39% stake in TVS Credit Services from Lucas-TVS for ₹711 crore, raising its shareholding in the NBFC to 85.15%
The scheme of amalgamation is subject to statutory and regulatory approvals, including those from the Reserve Bank of India, the Competition Commission of India, the Securities and Exchange Board of India, the National Stock Exchange of India, the National Company Law Tribunal, and the shareholders and creditors of the companies involved.
TVS Motor clarified that it is not a party to the scheme of amalgamation and that there will be no change in its shareholding pattern as a result of the proposed restructuring.