TVS Holdings Ltd (formerly known as Sundaram-Clayton Ltd) has infused ₹527 crore into its subsidiary, Home Credit India Finance Pvt Ltd (HCIFPL), through an additional equity acquisition.
The company acquired 22.91 crore shares of HCIFPL at ₹22.99 per share, amounting to a total consideration of ₹526.79 crore.
Objective of the investment
According to a regulatory filing with stock exchanges, the additional investment aims to sustain and accelerate HCIFPL’s current growth trajectory while maintaining optimal capital adequacy levels.
Following the acquisition, TVS Holdings’ shareholding in HCIFPL has increased to 80.39%. The transaction qualifies as a related party transaction, given that HCIFPL is a subsidiary of the company.
Promoter group and valuation
STPL Trading and Services Pvt Ltd, a member of the promoter group, holds an 8.10% stake in HCIFPL. TVS Holdings stated that the transaction has been conducted at arm’s length, based on a valuation report obtained from a registered valuer.
HCIFPL is a non-deposit-taking non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) and classified as a middle-layer NBFC.
Business operations
The company provides loans to the retail segment, including financing for consumer durables and cash loans. It also offers non-credit, value-added services and operates through both point-of-sale (POS) channels and online platforms.
For the financial year 2024–25, HCIFPL reported a turnover of ₹2,096.54 crore, a loss after tax of ₹530.04 crore, and a net worth of ₹1,583.04 crore.