TVS Group Announces Major NBFC Restructuring: Home Credit India, TVS Credit and Other Entities to Merge
TVS Holdings Limited has informed the stock exchanges that its subsidiary, Home Credit India Finance Private Limited, has approved a Composite Scheme of Amalgamation involving multiple entities within the group’s financial services business. The move is aimed at simplifying the corporate structure, improving operational efficiency, and strengthening the group’s lending platform.
The scheme has already received approval from the respective Boards of Directors of all participating companies and will now require approvals from regulators, shareholders, creditors, and the National Company Law Tribunal (NCLT) before becoming effective.
Companies Involved in the Merger
The proposed restructuring includes four companies within the TVS Group:
| Company | Role |
|---|---|
| STPL Trading and Services Private Limited | Transferor Company 1 |
| Home Credit India Finance Private Limited | Transferee Company 1 / Transferor Company 2 |
| TVS Housing Finance Private Limited | Transferor Company 3 |
| TVS Credit Services Limited | Transferee Company 2 |
Under the scheme:
- STPL Trading and Services will merge into Home Credit India Finance.
- Home Credit India Finance and TVS Housing Finance will subsequently merge into TVS Credit Services.
Financial Snapshot of the Companies
As of 30 June 2026, the companies reported the following financials:
| Company | Total Assets (₹ Cr) | Net Worth (₹ Cr) | Turnover (₹ Cr) |
| STPL Trading & Services | 387.26 | 279.37 | – |
| Home Credit India Finance | 8,367.07 | 2,957.81 | 619.70 |
| TVS Housing Finance | 0.02 | 0.02 | – |
| TVS Credit Services | 35,683.36 | 6,272.64 | 1,918.11 |
Why is TVS Group Undertaking This Merger?
According to the company, the restructuring is designed to create a more streamlined and efficient financial services business.
The key objectives include:
- Simplifying the overall group structure.
- Consolidating assets and liabilities.
- Achieving operational and management synergies.
- Reducing duplicate legal, regulatory and administrative compliance.
- Lowering operating costs.
- Improving capital allocation.
- Aligning the NBFC structure with RBI directions for group entities.
Management believes these changes will support long-term sustainable growth while enhancing value for stakeholders.
Share Exchange Ratio
The proposed scheme specifies the following consideration:
STPL Trading & Services → Home Credit India Finance
Shareholders of STPL Trading and Services will receive:
155.79 equity shares of Home Credit India Finance for every 200 equity shares held in STPL Trading and Services.
Home Credit India Finance → TVS Credit Services
Shareholders of Home Credit India Finance will receive:
9.94 equity shares of TVS Credit Services for every 180 equity shares held in Home Credit India Finance.
TVS Housing Finance
Since TVS Housing Finance is a wholly owned subsidiary of TVS Credit Services, no shares will be issued for this part of the merger.
The company also clarified that the exchange ratio will be updated closer to the effective date based on a fresh valuation conducted by the registered valuer. The valuation has been prepared by Bansi S Mehta Valuers LLP and accompanied by a fairness opinion from JM Financial Services Limited.
Regulatory Approvals Required
Before the scheme becomes effective, approvals will be required from several authorities, including:
- Reserve Bank of India (RBI)
- Competition Commission of India (CCI)
- Securities and Exchange Board of India (SEBI)
- National Stock Exchange (NSE)
- National Company Law Tribunal (NCLT)
- Shareholders and creditors of the respective companies
Impact on TVS Holdings Shareholders
TVS Holdings clarified that it is not a direct party to the amalgamation scheme. As a result, there will be no change in the shareholding pattern of TVS Holdings Limited following the implementation of the scheme.