TVS Holdings picks up 80% in Home Credit for ₹554 cr
TVS Holdings Ltd will acquire a 80.74% stake in Gurugram-based Home Credit India Finance Pvt. Ltd for ₹554 crore, while Premji Invest, and its associates, will pick up the remaining 19.26% equity for another ₹132 crore.
According to a company statement, the transaction is subject to approvals from the Competition Commission of India, and the Reserve Bank of India.
JM Financial acted as the financial advisor to Home Credit India Finance, while Khaitan & Co. was the legal advisor for the transaction.
According to the company's stock exchange filing, the board of directors, at a meeting held on Friday, approved the acquisition of 880.9 million shares of Home Credit India Finance from Home Credit India B.V and Home Credit International A.S.
Home Credit India, part of the global Home Credit Group, is a non-banking financial institution founded in 1997 in the Czech Republic and headquartered in the Netherlands. According to Sudarshan
Venu, managing director, TVS Holdings, financial services represent a huge opportunity for penetration, and digital infrastructure will facilitate India's consumption and investment story, going forward.
“That's why, at TVS holdings and at the group level, we are doubling down on our investments. We are looking forward to capitalising on the opportunity that this presents to establish a ₹50,000 crore book in the next three years between TVS credit and Home Credit India. Currently, we have a book of ₹32,000 crore, which we seek to grow.”
With assets under management of ₹5,535 crore, Home Credit India has a customer base of 16 million, both online and offline. Besides personal loans, it offers consumer durable loans to new-to-credit customers.