TVS Holdings announced on February 3 that the company has completed the acquisition of 80.74 percent equity stake in Home Credit India for Rs 554 crore. In an exchange filing, the company further said that the remaining 19.26 percent stake in the company has been purchased by Premji Invest and other associates of TVS Holdings.
Earlier in May 2024, the company had announced that it is set to buy the stake from Home Credit India BV, an entity based in the Netherlands and Home Credit International AS, a Czech Republic-based entity.
Home Credit India Finance is engaged in the business of providing unsecured loans and is one of the leading players in the consumer financing market and the personal loans segment, the company had said.
"This acquisition aligns seamlessly with TVS Holdings' mission to strengthen its presence in the financial services sector. Home Credit India has served over 1.6 crore customers, both online as well as offline. Home Credit India is one of the leading players in the consumer financing market with Assets under Management (AUM) of approximately 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," the company said. TVS Holdings further said that Home Credit India will significantly complement its existing capabilities, enabling it to offer enhanced financial solutions to a wider audience.
"Given the TVS Holdings Group's strength in financial services, there are several areas of synergies to be realized, including, collections, cost efficiencies, in-house digital and analytics capabilities, and cross-sell," the company added.
Also read: Our LIVE blog on stock market updates
Commenting on the completion of the acquisition, TVS Holdings Managing Director Sudarshan Venu said, "The acquisition of Home Credit India marks an important milestone for TVS Holdings. We are thrilled to welcome Home Credit India’s talented team and huge customer base of 1.6 crore customers to the TVS family. This transaction underscores our commitment to delivering innovative and inclusive financial solutions. Together with TVS Credit, the Group will now have a lending book of approximately Rs 33,000 Crore, taking us closer to our book-size goal of Rs. 50,000 crore in the next three years."
The shares of TVS Holdings recorded strong losses on February 3, dropping as much as 3.66 percent to close at Rs 9,122.75 apiece. This however comes amid an overall low market sentiment.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
