Chennai, May 10 (IANS): TVS Holdings Ltd announced on Friday that its Board has approved the acquisition of 80.74 per cent stake in Home Credit India Finance Private Ltd for a cash consideration of Rs 554 crore.

According to TVS Holdings, the balance 19.26 per cent stake in Home Credit India will be bought by Premji Invest and other associates.

Home Credit India, a non-banking finance company, provides unsecured loans.

Last fiscal, Home Credit India reported an Assets under Management (AUM) of Rs 5,535 crore. It closed 2022-23 with a turnover of Rs 1,720 crore, profit after tax of Rs. 80 crore, and net worth of Rs 1,922 crore, TVS Holdings said.

Upon the signing of a sale and purchase agreement to acquire 80.74 per cent, or 88,09,45,401 equity shares, of Home Credit India, TVS Holdings and Home Credit shall proceed to obtain approvals from the Competition Commission of India and the Reserve Bank of India for the proposed transaction.

Home Credit India is a local arm of the international consumer finance provider, Home Credit N.V., with operations spanning across Europe and Asia.

The Home Credit group entered the Indian market in 2012.

TVS Holdings said the acquisition is in line with its strategy of expanding into the consumer finance sector and Home Credit India will operate as its subsidiary.

According to Sudarshan Venu, Managing Director, TVS Holdings, together with TVS Credit, the group will now have a lending book of about Rs 31,000 crore, taking it closer to the book-size goal of Rs 50,000 crore in the next three years.

Meanwhile, the TVS Holdings scrip on Friday went up to Rs 10,458.70 after opening at Rs 9,750.05. Later, the scrip changed hands for about Rs 10,194.