TVS Motor Company has purchased an additional 4.39% equity stake in its non-banking financial subsidiary, TVS Credit Services. The automaker completed the stake acquisition for a total consideration of ₹711 crore, as detailed in a regulatory filing to the stock exchanges.
The acquisition increases TVS Motor Company's total shareholding in TVS Credit Services from 80.76% to 85.15% on a fully diluted basis. The company stated that the stake purchase is intended to consolidate ownership by acquiring shares held by external equity holders, thereby streamlining governance structure and supporting operational efficiencies between the automotive manufacturer and its financing division.
This comes after TVS recently explored seperating the financial services business, as part of a broader effort to "strengthen the business and unlock shareholder value."