TVS Motor Company to demerge consumer finance and related businesses into a separate entity
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓TVS Motor Company approved a demerger of its consumer finance business into a separate entity on Wednesday.
- ✓Shareholders will get one share in the new company for every share they hold.
- ✓The firm said, “A dedicated structure will provide greater strategic focus, flexibility in capital allocation and the ability.”
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
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.
Harita ARC Acquisition
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.
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