TVS Holdings, 2 others get CCI approval to buy stake in Home Credit India Fin

The Competition Commission of India (CCI) on Tuesday approved the proposed acquisition of stake in Home Credit India Finance by TVS Holdings, STPL, Premji Invest Group and other related transactions. The deal involves the 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 TVS Holdings Limited (TVSH), STPL Trading and Services Private Limited (STPL), and PI. Opportunities Fund-II (PIOF), respectively.

The regulator also approved 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, Anurag Aggarwal, V Ganesh and GWCF respectively.

The proposed combination involves the acquisition of 100 per cent of the issued and paid up share capital of Home Credit India Finance Private Limited (Home Credit) by TVSH, STPL, K Gopala Desikan, Anurag Aggarwal, 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 units, is engaged in manufacturing and distribution of automotive components, manufacturing and sales of two-wheelers, financial services including lending activities and real estate.

STPL is involved in commodities and securities trading at retail and wholesale level, while Gopala Desikan, Anurag Aggarwal and V Ganesh are natural persons and GWCF is a private investment-focused entity.

PIOF is a SEBI-registered Category-I Alternative Investment Fund and an affiliate of Premji Invest Group. It is set up to manage the investment corpus of Azim Premji Foundation, a non-profit organization.

In May this year, TVS Holdings said its board had approved Rs. 554.06 crore has approved the purchase of 80.74 per cent equity stake in Home Credit India Finance.

The remaining 19.26 percent holding will be bought by Premji Invest and other associates.

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

Home Credit India Finance is the local arm of Home Credit NV, an international consumer finance provider with operations spread across 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 and offline. It has in 2022-2023 Rs. 1,720 crore turnover.

Deals beyond a certain threshold require the approval of the regulator, which keeps tabs on unfair business practices as well as promotes fair competition in the market.