TVS Holdings closes Home Credit India deal for ₹554 cr

Deal closure and what changed

TVS Holdings has completed its acquisition of an 80.74% equity stake in Home Credit India Finance Pvt. Ltd. for a cash consideration of ₹554 crore. The transaction closes the exit of Home Credit Group from its India business, following a process that required approvals from Indian regulators.

The remaining 19.26% of the equity has been purchased by Premji Invest and other associates of TVS Holdings. In regulatory terms, the change results in a new shareholding and control structure at Home Credit India, along with a reconstituted board.

Who is buying what

The filings and approval letters outline a split of the 100% issued and paid-up share capital across multiple acquirers. TVS Holdings is the majority shareholder, while other investors hold the balance.

The Reserve Bank of India approval specifically references a transfer of 80.74%, 10.79% and 8.47% equity shares to TVS Holdings Limited, PI Opportunities Fund II, and STPL Trading and Services Private Limited respectively. These percentages add up to 100%.

Consideration and stake details

TVS Holdings stated that the acquisition of 80.74% is for ₹554.06 crore, which is also described as ₹5.54 billion in one disclosure. The company board had approved the acquisition earlier, and the purchase involved 88,09,45,401 equity shares of Home Credit India Finance, representing the 80.74% stake.

Separately, another disclosure in the provided text indicates that Premji Invest and its associates would pick up the remaining 19.26% for another ₹132 crore. TVS Holdings’ completion announcement reiterates that the remaining 19.26% has been bought by Premji Invest and other associates.

RBI approval for change in control

TVS Holdings received approval from the Reserve Bank of India for the proposed direct change in control of Home Credit India Finance and the consequent change in the board of directors. The RBI approval was conveyed through a letter dated 29 November 2024 and referenced Paragraph 42 of the Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023.

The RBI letter covered (i) the change in shareholding/control through the transfer of equity shares and (ii) changes in board composition. This approval is a key regulatory step for ownership and control changes in regulated non-banking financial companies.

Competition Commission of India clearance

The Competition Commission of India (CCI) also cleared the proposed combination. TVS Holdings said it received CCI’s nod for the proposed acquisition of 80.74% of Home Credit India Finance.

The CCI approval referenced related transactions involving TVS Holdings, STPL, the Premji Invest Group, and other parties. The release described the proposed combination as an acquisition of 100% of the issued and paid-up share capital of Home Credit India Finance by a set of acquirers, including TVS Holdings, STPL, K Gopala Desikan, Anuraag Agarwal, V Ganesh, GWC Family Fund Investments Pte Ltd (GWCF), and PIOF.

Board and governance changes mentioned in approvals

Alongside the ownership transfer, the RBI communication also noted approvals connected to board changes. The text references the appointment of Mr. K Gopala Desikan as Non-Executive Director.

It also mentions Balasubramanyam Sriram and Deepali Pant Joshi as Independent Directors of Home Credit India Finance Pvt. Ltd. These changes are presented as part of the overall control and governance transition that accompanies the stake transfer.

How the process unfolded

The acquisition path captured in the provided text points to a sequence: TVS Holdings’ board approval, competition clearance, and RBI approval, followed by deal completion.

A separate disclosure notes that in May, TVS Holdings said its board approved the acquisition of an 80.74% equity stake for ₹554.06 crore. Later, CCI considered and approved the proposed acquisition. The transaction was also described as being subject to RBI approval, which subsequently came through the RBI’s letter dated 29 November 2024.

Key facts at a glance

Regulatory and market relevance

The transaction matters because it involves a change in control of an RBI-regulated lender, which requires explicit supervisory approval. The reference to the RBI’s scale-based regulation master direction highlights the compliance framework under which such changes are evaluated.

It also illustrates how large M&A transactions in financial services typically require multiple clearances. In this case, CCI approval addressed competition aspects, while the RBI approval addressed change in control and board composition for the regulated entity.

Conclusion

TVS Holdings has completed its ₹554 crore purchase of an 80.74% stake in Home Credit India Finance, with the remaining 19.26% acquired by Premji Invest and other associates. The approvals referenced in the disclosures include CCI clearance and an RBI letter dated 29 November 2024 permitting the change in shareholding/control and associated board appointments.