In a bid to create value for shareholders and greater strategic focus on finance businesses, TVS Motor Company, part of TVS VENU, on Wednesday approved a demerger of its consumer finance and related business undertaking into a separate holding company.
Under the proposed scheme, shareholders will receive equal number of shares in the resulting company as in TVS Motor, enabling them to participate in the future growth of both the mobility and consumer finance businesses.
The implementation of the scheme remains subject to the required approvals.
To implement the demerger, TVS Motor Company has also approved the acquisition of Harita ARC Ltd from TVS Credit Services Ltd for ₹25,000 in cash. Harita ARC will become a wholly owned subsidiary of TVS Motor and is being acquired to house the consumer finance business following the demerger. Its shareholding pattern will mirror that of TVS Motor Company following the demerger.
The scheme provides for a 1:1 share entitlement ratio, meaning that for every one fully paid-up equity share of TVS Motor Company held on the record date, the eligible shareholder will receive one fully paid-up equity share of Harita ARC Ltd, with a face value of ₹1 each.
The turnover of the demerged undertaking for the period ended September 30, 2026 was ₹3,921 Crore out of the total turnover of ₹35,770 Crore of TVS Motor, the company said in an exchange filing. The resulting company is proposed to be listed on the stock exchanges, subject to statutory and regulatory approvals.
“The consumer finance and related business have expanded in scale and scope and a dedicated structure will provide greater strategic focus, flexibility in capital allocation and the ability to pursue opportunities across the consumer finance and related sectors,” the company said in a statement.
Sudarshan Venu, Chairman, TVS Motor Company, said that the NBFC TVS Credit, along with Home Credit India, serves more than 45 million customers across 100,000 touchpoints in India. The company’s acquisition of education finance company Varthana earlier this year will accelerate our participation in secured and longer-tenure lending and our recent investment in Jana Small Finance Bank is to capture the opportunity arising from India’s evolving financial needs, he added.
TVS Motor is also amalgamating TVS Motor Services, a wholly owned subsidiary, within itself, with an objective to streamline the group corporate structure, consolidate assets and liabilities, and enhance operational synergies.
It has also approved acquiring controlling interest in STPL Trading and Services Private Limited, for around ₹530 crore, which is in the process of merging with TVS Credit Services. STPL is engaged in the business of trading and services, and it holds 7.5 per cent shares in Home Credit India Finance Private Limited.
Effectively, by acquiring STPL shares, TVS Motor will ultimately additionally hold 2.4 per cent of TVS Credit Services Limited (TVSCS) post-merger of the Home Credit with TVSCS.
Published on October 28, 2026
