TVS Holdings Limited (formerly known as Sundaram-Clayton Limited) has announced a significant move to reward its shareholders through a bonus issue of Cumulative Non-Convertible Redeemable Preference Shares (NCRPS). The company's Board of Directors approved a Scheme of Arrangement on September 22, 2025, proposing to issue 46 NCRPS of INR 10 each for every 1 equity share held by shareholders.

Scheme Details

The bonus issue, valued at approximately INR 986.52 crore, aims to utilize the company's general reserves and retained earnings. As of March 31, 2025, TVS Holdings reported retained earnings and securities premium of INR 1,456.26 crore, providing ample resources for this corporate action.

Key features of the NCRPS issue include:

• Ratio: 46 NCRPS for every 1 equity share
• Face Value: INR 10 per NCRPS
• Coupon Rate: 6% per annum
• Redemption: After 12 months from the date of allotment
• Redemption Price: INR 10 per NCRPS plus accrued interest

Financial Impact

The bonus issue will significantly alter TVS Holdings' capital structure. Post-issue, the company's paid-up capital is expected to increase from INR 10.12 crore to INR 940.79 crore, reflecting the substantial value being transferred to shareholders.

Listing and Approvals

TVS Holdings intends to list the NCRPS on both the National Stock Exchange of India Limited (NSE) and BSE Limited, where its equity shares are currently traded. The implementation of this scheme is subject to various approvals, including:

1. Stock exchanges
2. National Company Law Tribunal (NCLT)
3. Shareholders and creditors (as applicable)

Investor Implications

This move by TVS Holdings represents a significant value proposition for its shareholders. The bonus NCRPS not only provides an additional investment instrument but also offers a guaranteed 6% annual return over a 12-month period. This strategy allows the company to reward its shareholders while retaining capital for potential growth opportunities.

The company has stated that the actual quantum of bonus NCRPS and utilization of reserves will be determined based on the total outstanding equity share capital as on the Record Date, which will be set after obtaining necessary approvals.

TVS Holdings' decision to issue bonus preference shares demonstrates its commitment to enhancing shareholder value while maintaining a strong financial position. As the scheme progresses through regulatory approvals, investors will keenly watch for the final implementation details and the impact on the company's financial structure.

TVS Holdings Limited (formerly known as Sundaram-Clayton Limited) has announced a significant development that could potentially benefit its shareholders. The company is set to hold a Board of Directors meeting on September 22, 2025, to consider the issuance of Cumulative Non-Convertible Redeemable Preference Shares as a bonus to its shareholders.

Key Details of the Announcement

• Meeting Date: September 22, 2025 (Monday)
• Purpose: To consider issuing Cumulative Non-Convertible Redeemable Preference Shares as a bonus
• Beneficiaries: Shareholders of TVS Holdings Limited

Official Notification

The company has officially notified the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about the scheduled meeting. R Raja Prakash, the Company Secretary of TVS Holdings Limited, issued the intimation in compliance with Regulations 29 and 50 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

About the Proposed Bonus Issue

The board will deliberate on the issuance of Cumulative Non-Convertible Redeemable Preference Shares. These shares, if approved, would be distributed as a bonus to the existing shareholders of the company. This move could potentially enhance shareholder value without requiring any additional investment from the shareholders.

Company Information

TVS Holdings Limited has its registered office at "Chaitanya", No. 12, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600006. The company can be reached at 044 28332115 or via email at corpsec@tvsholdings.com .

Implications for Investors

While the final decision is yet to be made, this announcement has sparked interest among investors and market watchers. Shareholders are advised to keep an eye on further communications from the company following the board meeting for more details on the potential bonus issue and its terms.

It's important to note that the board meeting will consider this proposal, and the final decision will be subject to board approval and any necessary regulatory clearances.

TVS Holdings Limited's move to consider this bonus issue comes as an interesting development in the corporate landscape, potentially aimed at rewarding its shareholders. As always, investors are encouraged to conduct their own research and consult with financial advisors before making any investment decisions based on this news.