CHENNAI: TVS Motor Company, a leading two and three-wheeler maker, will demerge its consumer-finance-related investments into a separate listed holding company, marking a significant shift in the TVS Venu group’s strategy, as a financial services business built over 15 years of investment emerges as an independent growth engine alongside its core mobility business.The proposed demerger, approved by the board on Wednesday, will transfer TVS Motor’s investment in TVS Credit Services and certain other non-core investments to the new entity. Existing TVS Motor shareholders, including promoters and public investors, will receive an equal number of shares in the new entity, in proportion to their current holdings. TVS Motor will not retain a direct stake in the new company.“India’s rapidly expanding financial services sector offers tremendous opportunities for long-term growth,” said Sudarshan Venu, chairman of TVS Motor Company. The new structure would give the businesses greater strategic autonomy to pursue opportunities and deploy capital according to their growth priorities, while enabling shareholders to continue participating in the future growth of both businesses, he added.The group is already consolidating its NBFC operations in line with an RBI directive. The consolidation of its NBFCs is expected to be completed by March or April 2027, ahead of the demerger’s appointed date of July 20, 2027, K Gopala Desikan, CFO of TVS Motor, said during the Q2 earnings call.
