TVS Holdings completes acquisition of Home Credit India
Accordingly, the acquisition of Home Credit was funded through a combination of the proceeds from the recent sale of the Company’s real estate assets and borrowings from capital markets, ensuring prudent financial management and capital utilization by TVS Holdings.
Mumbai, 3rd February, 2025: TVS Holdings Limited (BSE: 520056, NSE: TVSHLTD) (“TVS Holdings”) is pleased to announce the successful completion of its acquisition of a 80.74% equity stake of Home Credit India Finance Private Limited (“Home Credit India”) for Rs 554 Crores (”Transaction”). The remaining 19.26% of the equity stake has been purchased by Premji Invest and other associates of TVS Holdings.
This acquisition aligns seamlessly with TVS Holdings’ mission to strengthen its presence in the financial services sector. Home Credit India has served over 1.6 crore customers, both online as well as offline. Home Credit India is one of the leading players in the consumer financing market with Assets under Management (AUM) of ~Rs 5,535 Cr. as of March 31, 2024. It has an employee base of 3,800 and a strong network of over 50,000 points-of-sale (PoS) spread over 625 cities across India. It focuses on New-to-Credit (NTC) customers, enabling them with Consumer durable loans for low-cost smartphones, along with personal loans. Home Credit India will significantly complement TVS Holdings’ existing capabilities, enabling it to offer enhanced financial solutions to a wider audience.
This acquisition aligns with the strategy of TVS Holdings Group to play a leading role in deepening the financial penetration in India. Given the Group’s strength in financial services, there are several areas of synergies to be realized, including, collections, cost efficiencies, in-house digital and analytics capabilities, and cross-sell.
Join PSU Connect on WhatsApp now for quick updates! Click here
Read Also : CSR: BEL handed over 10 Thermal Fumigation e-Carts to Kochi Municipal Corporation
The Company’s investment in real estate business was sold earlier considering its capital-intensive nature and high gestation period of the projects. The Board felt that the proceeds received from sale of real estate business can be more productively deployed in other core investment strategy of the Company.
Accordingly, the acquisition of Home Credit was funded through a combination of the proceeds from the recent sale of the Company’s real estate assets and borrowings from capital markets, ensuring prudent financial management and capital utilization by TVS Holdings.
By leveraging the sale proceeds of the real estate assets, TVS Holdings has maintained its strong financial position while expanding into a high-growth industry.
Read Also : GRSE Q3 FY25: Reported Net Profit Growth of 15%, Stood at Rs. 283 CroreCommenting on the completion of the transaction, Sudarshan Venu, Managing Director, TVS Holdings, said. “The acquisition of Home Credit India marks an important milestone for TVS Holdings. We are thrilled to welcome Home Credit India’s talented team and huge customer base of 1.6 crore customers to the TVS family. This transaction underscores our commitment to delivering innovative and inclusive financial solutions. Together with TVS Credit, the Group will now have a lending book of ~Rs 33,000 Crore, taking us closer to our book-size goal of Rs. 50,000 Cr in the next three years.”
“We are confident that this acquisition will help the group strengthen its position in the financial services sector, accelerate scale and profitability and build significant value for all stakeholders” said TK Kurien, Managing Partner and Chief Investment Officer, Premji Invest.
Read Also : RITES wins Gold ICAI Award for excellence in Financial Reporting