TVS Holdings Acquires Majority Stake in Home Credit India

New Delhi, Sep 24 (PTI) The Competition Commission of India (CCI) on Tuesday approved the proposed acquisition of stakes in Home Credit India Finance by TVS Holdings, STPL, Premji Invest Group as well as other related transactions.

The deal includes acquisition of 80.74 per cent, 8.47 per cent and 10.79 per cent of the issued and paid-up share capital of Home Credit by each of TVS Holdings Ltd (TVSH), STPL Trading and Services Pvt Ltd (STPL), and PI Opportunities Fund-II (PIOF), respectively.

The regulator also granted its nod for the acquisition of 2.6 per cent, 4.3 per cent, 2.7 per cent, and 90.4 per cent of the equity share capital of STPL by K Gopala Desikan, Anuraag Agarwal, V Ganesh, and GWCF, respectively.

The proposed combination involves acquisition of 100 per cent of the issued and paid-up share capital of Home Credit India Finance Pvt Ltd (Home Credit) by TVSH, STPL, K Gopala Desikan, Anuraag Agarwal, V Ganesh, and GWC Family Fund Investments Pte Ltd (GWCF) (STPL Acquirers) and PIOF, CCI said in a release.

TVSH is a Reserve Bank of India-registered as a Core Investment Company (CIC) to carry on the business of a non-banking financial institution (NBFC-CIC) without accepting public deposits.

TVSH through its group entities, engaged in the manufacturing and distribution of automotive components, manufacturing and sale of two-wheelers, financial services including lending activities, and real estate.

STPL is incorporated to trade goods and securities at a retail and wholesale level, while K Gopala Desikan, Anuraag Agarwal and V Ganesh are natural persons and GWCF is a private investment-centric entity.

PIOF is a Sebi-registered Category-I alternative investment fund and an affiliate of the Premji Invest Group. It has been set up to manage the investment corpus of the Azim Premji Foundation, a not-for-profit organisation.

In May this year, TVS Holdings said its board approved the acquisition of a 80.74 per cent equity stake of Home Credit India Finance for Rs 554.06 crore.

The remaining 19.26 per cent holding will be purchased by Premji Invest and other associates.

The transaction will allow TVS Holdings to further enhance its presence in various areas of the country and expand its financial customer base.

Home Credit India Finance is a local arm of the international consumer finance provider Home Credit NV with operations spanning Europe and Asia.

Home Credit Group entered the Indian market in 2012. Since then, Home Credit has served over 1.6 crore customers in India, both online as well as offline. It had clocked a turnover of Rs 1,720 crore in 2022-2023.

Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.