Home Credit India Finance Private Limited, a subsidiary of tvs holdings , has executed a Share Purchase Agreement to acquire 100% of Varthana Finance Private Limited for Rs 967 Cr. The all-cash transaction, signed on July 15, 2026, will allow TVS Holdings to expand its presence into the secured and longer-tenure education-finance segment. Post-acquisition, Varthana Finance will become a wholly-owned subsidiary of Home Credit India and a step-down subsidiary of TVS Holdings Limited.

The proposed acquisition is subject to requisite approvals from the Reserve Bank of India and other statutory authorities. The company expects the transaction to close within nine months from the execution of the agreement, pending the fulfilment of customary closing conditions and regulatory clearances. The deal is not a related party transaction, and the promoter group does not hold any interest in the target entity.

Varthana Finance is a non-banking financial company registered with the RBI, specializing in providing credit facilities to schools, colleges, and educational institutions. For the financial year 2025-2026, the target reported a turnover of Rs 398.31 Crores, a profit after tax of Rs 18.65 Crores, and a net worth of Rs 574.23 Crores. The company was incorporated on June 12, 1984, and operates exclusively in India.

Financial Performance of Varthana Finance

Transaction Details

The acquisition aligns with TVS Holdings' strategy to build and scale high-quality financial services businesses. By integrating Varthana's specialized education-finance franchise, the group aims to strengthen its position in the financial services sector and leverage synergies in technology, risk management, and distribution.

VS Trust has pledged 4,20,400 equity shares in tvs holdings to Aditya Birla Capital Limited to secure a facility of ₹250 crore. The pledge agreement was executed on 7 July 2026 to avail the facility with the maintenance of required security cover in favor of the lender. This disclosure was submitted to BSE Limited and National Stock Exchange of India Limited on 9 July 2026 under Regulation 31 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The encumbrance was created by VS Trust, where Mr. Venu Srinivasan acts as the Trustee. Prior to this transaction, the promoter group held 1,50,63,398 shares, representing 74.45% of the total share capital, with 22,02,608 shares already encumbered. The creation of this pledge increases the total encumbered shares held by the promoters to 26,23,008, which constitutes 12.96% of the total share capital.

Aditya Birla Capital Limited, classified as a Non-Banking Financial Company (NBFC), is the entity in whose favor the shares have been encumbered. The value of the shares on the date of the event was ₹596,67,37,200, resulting in a security cover ratio of 2.39 against the borrowed amount of ₹250 crore. The borrowed amount is intended for general purpose use.

Shareholding Details

The following table outlines the promoter holding and the details of the encumbrance event:

The disclosure confirms that the encumbered shares do not constitute 50% or more of the promoter shareholding, nor do they constitute 20% or more of the total share capital of TVS Holdings Limited. The filing references SEBI circulars dated 5 August 2015 and 7 August 2019 regarding the disclosure format.