TVS Motor proposes demerger of its consumer finance and related business undertaking

 The Board of Directors of TVS Motor Company, part of TVS VENU, today approved a Composite Scheme of Arrangement (Scheme) to demerge its consumer finance and related business undertaking into a separate holding company.

Under the proposed Scheme, shareholders of the company will receive equal number of shares in the resulting company as in TVS Motor, enabling them to participate in the future growth of both the mobility and consumer finance businesses.

The consumer finance and related business have expanded in scale and scope and a dedicated structure will provide greater strategic focus, flexibility in capital allocation and the ability to pursue opportunities across the consumer finance and related sectors. The proposed structure will better align shareholders with the future growth of these businesses while supporting their continued expansion.

In August 2026, the NBFC Companies within the Group have approved a proposal to merge and consolidate the Group's consumer finance businesses into a single operating platform. The proposed demerger is the next step in this strategic process and is intended to segregate the Consumer finance and related businesses from TVS Motor into a dedicated platform and reflects the Group's long-term conviction in India's financial services sector and its role in supporting economic growth, financial inclusion and rising aspirations across the country.

The proposed structure will also enable TVS Motor to sharpen its focus on its continuing automotive and mobility businesses. The Group remains committed to the growth and development of both the dedicated consumer finance platform and TVS Motor's continuing business.

The Composite Scheme will also envisage merger of TVS Motor Services, a wholly owned subsidiary with the company for streamlining the corporate structure and enhancing operational synergies.

In addition, the Board also approved, acquiring controlling interest in STPL Trading and Services Private Limited which is in the process of merging with TVS Credit Services. Pursuant to this, the company will effectively get an additional ~2.4% holding in TVS Credit Services post the consummation of merger.