TVS Motor Company’s Board of Directors has approved a Composite Scheme of Arrangement to demerge its consumer finance and related businesses into a separate holding company. This strategic move aims to unlock shareholder value by creating a focused platform with greater autonomy. Shareholders will receive an equal number of shares in the new entity, allowing participation in both mobility and financial services growth.

TVS Motor Company Announces Demerger of Consumer Finance Business

Bengaluru, October 28, 2026: The Board of Directors of TVS Motor Company, a part of the TVS VENU group, has today approved a Composite Scheme of Arrangement (Scheme) to demerge its consumer finance and related business undertaking into a separate holding company. This strategic initiative is designed to unlock shareholder value through a more focused platform for the Group’s financial services operations.

Key Objectives of the Demerger

• Enhanced Shareholder Value: The demerger aims to unlock shareholder value by creating a distinct, focused platform for the Group’s consumer finance and related businesses.
• Strategic Autonomy: The new structure will provide greater strategic autonomy, sharper capital allocation, and enhanced flexibility for the financial services arm to pursue sector-specific opportunities.
• Shareholder Participation: Shareholders of TVS Motor Company will receive an equal number of shares in the resulting holding company, enabling them to participate in the future growth of both the mobility and financial services businesses.

Rationale Behind the Move

The consumer finance and related businesses have experienced significant expansion, necessitating a dedicated structure for greater strategic focus and operational flexibility. This proposed demerger is the next step in a strategic process that began in August 2026 with the approval to merge and consolidate the Group’s NBFC Companies into a single operating platform. The objective is to segregate these businesses from TVS Motor, creating a dedicated platform that reflects the Group’s long-term conviction in India’s financial services sector.

This move will also enable TVS Motor Company to sharpen its focus on its core automotive and mobility businesses. The Group remains committed to the growth and development of both the dedicated consumer finance platform and TVS Motor’s continuing automotive business.

Leadership Perspective

Sudarshan Venu, Chairman, TVS Motor Company, commented, “India’s rapidly expanding financial services sector offers tremendous opportunities for long-term growth. At TVS VENU, we have built a meaningful presence and capabilities in this sector through sustained investments over 15 years. Our NBFC TVS Credit, along with Home Credit India, serves more than 45 million customers across 100,000 touchpoints in India.” He further added that the demerger will allow the financial services businesses to pursue opportunities and allocate capital in line with their growth priorities, realizing their full potential, while TVS Motor Company focuses on strengthening its leadership in mobility globally.

Corporate Structure Enhancements

In addition to the demerger, the Composite Scheme will also envisage the merger of TVS Motor Services, a wholly owned subsidiary, with the company. This is intended to streamline the corporate structure and enhance operational synergies.

The Scheme is subject to the necessary statutory, regulatory, shareholder, and other approvals.

Furthermore, the Board approved acquiring a controlling interest in STPL Trading and Services Private Limited, which is in the process of merging with TVS Credit Services. This will effectively result in an additional ~2.4% holding in TVS Credit Services post-merger.

Source: BSE