TVS Holdings to acquire 80.74% in Home Credit India

Mumbai: TVS Holdings Limited on Friday said that it will acquire 80.74 per cent stake in Home Credit India Finance Private Limited for Rs 554 crore. The remaining 19.26 per cent of the equity stake will be purchased by Premji Invest and other associates. Upon signing of a Sale and Purchase Agreement, TVS Holdings and Home Credit shall proceed to obtain approvals from the Competition Commission of India and the Reserve Bank of India, respectively, for the Proposed Transaction.

Sudarshan Venu, managing director, TVS Holdings said. “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 around 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.”

Home Credit will operate as a subsidiary of TVS Holdings, maintaining its brand identity and focus on its unique customer segment, while benefiting from the resources and support of TVS Holdings Group, said a statement from TVS Holdings. The statement said that there are several areas of synergies to be realized, including, collections, cost efficiencies, in-house digital and analytics capabilities, and cross-sell.

The Board of Directors at its meeting held on Friday approved the acquisition of 88,09,45,401 equity shares of Home Credit India Finance Pvt Ltd (HCIFPL), amounting to 80.74 per cent stake, from Home Credit India BV, an entity based in the Netherlands and Home Credit International AS, a Czech Republic-based entity, TVS Holdings said in a regulatory filing.

Home Credit is one of the leading players in the consumer financing market and has Assets under Management (AUM) of around Rs 5,535 crore 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.