TVS Holdings to acquire 80.74% in Home Credit India for Rs 554 Cr

The Board of directors of TVS Holdings Limited have approved the acquisition of 80.74% equity stake in Home Credit India Finance Private Limited (HCIFPL) for Rs 554 crore, said a statement by the company. The remaining 19.26% equity stake will be purchased by Premji Invest and other associates.

After signing the sale and purchase agreement, TVS Credit, an unlisted subsidiary of TVS Holdings, and Home Credit will proceed to obtain approvals from the Competition Commission of India (CCI) and the Reserve Bank of India (RBI) for the proposed transaction.

Home Credit will operate as a subsidiary of TVS Holdings, maintaining its brand identity, while benefiting from the resources and support of TVS Holding.

"Home Credit is a significant player in consumer financing with a lot of potential. Together with TVS Credit, the Group will now have a lending book of approximately Rs 31,000 crore, taking us closer to our book-size goal of Rs 50,000 crore in the next three years. Collectively, we will now be serving 3 crore financial services customers across more than 90,000 touch points pan India," said Sudarshan Venu, Managing Director, TVS Holdings.

"As an existing shareholder in TVS Credit, we are delighted to partner with TVS Holdings in the Home Credit India acquisition. We are confident that this acquisition will help the company accelerate scale and profitability and build significant value for all stakeholders," said TK Kurien, Managing Partner and Chief Investment Officer, Premji Invest.

TVs holdings will purchase 88,09,45,401 equity shares of Home Credit India from Home Credit India and Home Credit International.

Established in 1997, Home Credit is an international consumer finance provider operating across various markets. Originating from the Czech Republic, Home Credit offers a diverse range of services, including credit and ancillary insurance products.

During the year 2022-23, HCIFPL generated a turnover of Rs 1,720 crore.