Former Wipro chairman Azim Premji's investment firm is eyeing a piece of the Indian credit lending industry by investing $150 million in TVS Credit Services, the two-wheeler maker's non-banking finance company (NBFC) arm, according to a Reuters report.
Also in talks with TVS Credit Services is private equity firm Carlyle. The talks are for a 20-percent stake in the NBFC unit, which is being valued at $612 million, the report further added. The company offers credit for lower-income users predominantly for two-wheelers and used four-wheelers but has now entered the personal credit space as well, including personal loans and pre-approved credit via credit cards.
While Carlyle held talks with TVS credit much earlier, the former Wipro chairman's investment unit has emerged as the strong favourite to seal the deal, with a decision expected by May-end, the Reuters report said.
"There are two components to this business - the older, stable motor-financing arm and the new-age loans and services, which can be an add-on growth lever," one of the sources in the know told Reuters.
None of the three parties have made any comment as of writing this report.
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