CCI Grants Approval for TVS Holdings and Partners to Acquire Stakes in Home Credit India Finance

The Competition Commission of India (CCI) has given the green light to a significant acquisition involving Home Credit India Finance. TVS Holdings, STPL Trading and Services Pvt Ltd, and Premji Invest Group are set to acquire stakes in the company. This transaction includes acquiring 80.74%, 8.47%, and 10.79% of Home Credit's share capital by TVS Holdings, STPL, and PI Opportunities Fund-II, respectively.

Representative image

Acquisition Details and Stake Distribution

The deal also involves acquiring shares in STPL by several individuals and entities. K Gopala Desikan, Anuraag Agarwal, V Ganesh, and GWCF will acquire 2.6%, 4.3%, 2.7%, and 90.4% of STPL's equity share capital, respectively. The proposed acquisition will result in these parties collectively owning 100% of Home Credit India Finance's issued and paid-up share capital.

TVS Holdings is registered with the Reserve Bank of India as a Core Investment Company (CIC). It operates as a non-banking financial institution without accepting public deposits. Through its group entities, TVS Holdings is involved in manufacturing automotive components, selling two-wheelers, providing financial services, and engaging in real estate activities.

Entities Involved in the Transaction

STPL Trading and Services Pvt Ltd is engaged in trading goods and securities at both retail and wholesale levels. Meanwhile, K Gopala Desikan, Anuraag Agarwal, and V Ganesh are individual investors. GWCF is a private investment-focused entity. PI Opportunities Fund-II (PIOF) is an affiliate of the Premji Invest Group and a Sebi-registered Category-I alternative investment fund.

In May this year, TVS Holdings announced its board's approval for acquiring an 80.74% stake in Home Credit India Finance for Rs 554.06 crore. The remaining 19.26% stake will be acquired by Premji Invest Group and other associates. This strategic move aims to enhance TVS Holdings' presence across various regions in India while expanding its financial customer base.

Home Credit India Finance operates as part of the international consumer finance provider Home Credit NV, which has a presence in Europe and Asia. Since entering the Indian market in 2012, Home Credit has served over 1.6 crore customers through both online and offline channels.

Regulatory Approval Process

The CCI's approval is necessary for transactions exceeding certain thresholds to ensure fair competition and prevent unfair business practices in the marketplace. In the fiscal year 2022-2023, Home Credit India Finance reported a turnover of Rs 1,720 crore.

This acquisition marks a significant step for TVS Holdings as it seeks to strengthen its foothold in India's financial sector while leveraging Home Credit's established customer base and operational expertise within the country.