NEW DELHI: Chennai-based TVS Holdings is acquiring 80.74% of the equity stake in Home Credit India Finance (HCIFPL) for Rs 554 crore. The Board of TVS Holdings approved this proposal on Friday while stating that the remaining 19.26% of the equity will be purchased by Premji Invest and other associates.
This acquisition will help TVS Holdings to expand its presence in the consumer finance sector. Home Credit will operate as a subsidiary of TVS Holdings, maintaining its brand identity and focus on its unique customer segment.
Sudarshan Venu, Managing Director, TVS Holdings said, “Home Credit is a significant player in consumer financing with a lot of potential. Together with TVS Credit, the Group will now have a lending book of Rs 31,000 crore, taking us closer to our book-size goal of Rs 50,000 crore in the next three years. Collectively, we will now be serving 3 crore financial services customers across more than 90,000 touch points pan India.”
Home Credit India is a part of the Home Credit Group, an international consumer finance provider. It entered the Indian market in 2012 and had an Assets under Management (AUM) of Rs 5,535 crore as of March 31, 2024. During FY23-34, HCIFPL generated a turnover of Rs 1,720 crore. The profit after tax came at Rs 80 crore and it had a net worth of Rs 1,922 crore.