TVS Motor Company Limited , a leading player in the two and three-wheeler segment, has received approval from the National Company Law Tribunal (NCLT), Chennai Bench, for its Scheme of Arrangement to issue bonus preference shares to existing equity shareholders. The scheme, which aims to reward shareholders by utilizing the company's substantial surplus reserves, has been sanctioned under Sections 230 to 232 of the Companies Act, 2013.

Key Details of the Bonus Issue

Scheme Highlights

The scheme allows TVS Motor to issue fully paid-up preference shares as a bonus to equity shareholders recorded in the company's register of members or depository records on the specified record date. This move is designed to optimize the utilization of the company's surplus reserves, which have accumulated over the years from retained profits.

Financial Implications

TVS Motor plans to fund this bonus issue through its general reserves and retained earnings. As of December 31, 2023, the company's free reserves and retained earnings stood at INR 7,574.00 crores, significantly exceeding the proposed issue size of INR 1,900.35 crores.

Rationale Behind the Move

The company cites several reasons for this strategic decision:

1. Substantial surplus reserves exceeding current and future business needs
2. Strong free cash flow generation capability
3. Optimal utilization of excess funds to reward shareholders
4. Increased flexibility in liquidity management for the company

Listing and Trading

The bonus preference shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), providing shareholders with a near-cash, tradeable instrument.

Regulatory Compliance

The NCLT order directs TVS Motor to file the revised Memorandum and Articles of Association with the Registrar of Companies. The company is also required to make any necessary payments for the enhancement of its Authorized Capital.

Impact on Shareholders and Debenture Holders

The scheme is designed to benefit equity shareholders without affecting the interests of the company's Non-Convertible Debenture (NCD) holders. The preference shares will rank subservient to the NCDs in the priority of claims, ensuring no economic impact on the NCD holders.

Conclusion

This strategic move by TVS Motor Company demonstrates its commitment to shareholder value creation while maintaining a strong financial position. The bonus preference share issue provides an innovative way to reward shareholders while giving the company flexibility in managing its liquidity. As the scheme moves towards implementation, investors and market watchers will be keen to observe its impact on TVS Motor's stock performance and overall market perception.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.

TVS Motors , a global leader in the two and three-wheeler segment, has launched an innovative initiative aimed at promoting design excellence and reshaping the future of mobility in India. The 'TVS Indus Design Honours' program, announced on August 4, 2025, is set to become an annual platform that nurtures visionary design talent and champions the concept of 'Design in India'.

Bridging Heritage and Innovation

The term 'Indus' in the program's name draws inspiration from the Indus Valley Civilization, one of the world's earliest and most advanced societies. This choice symbolizes TVS Motor's ambition to blend India's rich design heritage with a progressive, forward-looking approach to modern-day mobility solutions.

Fostering Next-Generation Mobility Ideas

Amit Rajwade, Vice President of Design at TVS Motor Company, emphasized the significance of the initiative: "Design is the bridge between imagination and impact. With TVS Indus Design Honours, we are creating a platform where the next generation of designers, thinkers and creators can reimagine Indian mobility as an original, culturally rooted expression of who we are and where we're headed."

The program is open to Indian residents, including students, young professionals, and design enthusiasts. It encourages participants to submit individual entries proposing mobility concepts across monowheel, two-wheeler, and three-wheeler formats, while incorporating environmental, social, and cultural relevance.

Regional Inspiration and Competition Details

The 2025 edition of the challenge draws inspiration from four distinctive regions of India: Thar, Sahyadri, Kutch, and Mumbai. This regional focus aims to encourage designs that are deeply rooted in India's diverse landscapes, lifestyles, and cultural contexts.

Key details of the competition include:

• Registration opens: August 4, 2025
• Submission deadline: October 6, 2025
• Prizes: Cash prizes up to ₹5.00 lakh for top three winners
• Additional recognition: Viewers' Choice award
• Potential opportunity: Internship consideration with the TVSM Design Team

Evaluation and Judging

Submissions will be evaluated by an expert jury comprising leading figures from the world of design and mobility. The judging criteria will focus on originality, contextual relevance, user-centricity, and feasibility of the proposed designs.

Amplifying 'Make in India' Through Design

This initiative represents a significant step in TVS Motor's commitment to design-led innovation and sustainable mobility. By focusing on solutions that are meaningful, inclusive, and deeply rooted in the Indian context, TVS Indus Design Honours aims to spotlight India as a global design powerhouse and amplify the 'Make in India' movement.

The launch of TVS Indus Design Honours underscores TVS Motor's dedication to nurturing a new generation of Indian creators ready to lead on the global design stage, while simultaneously advancing the company's position in the competitive two and three-wheeler market.

Interested participants can register and submit their entries through the official TVS Indus website at www.tvsindus.com . The competition is free to enter and welcomes submissions from individuals across all educational backgrounds, promoting inclusivity and diversity in design thinking.