TVS Holdings Limited has successfully completed the allotment of ₹650 crores worth non-convertible debentures through the NSE Electronic Bidding Platform. The Asset Liability Management Committee of Directors, authorized by the Board of Directors, approved the allotment on 24th March 2026 following successful bidding and receipt of subscription amounts from identified investors.

Debenture Issue Details

The company allotted 65,000 Senior, Rated, Unsecured, Listed, Redeemable, Non-Convertible Debentures with specific terms designed to attract institutional investors.

Interest and Maturity Structure

The debentures offer competitive returns with a structured payment schedule spanning 39 months from the allotment date.

Payment Schedule

The company has established a clear timeline for coupon payments and principal redemption:

• 1st Coupon Payment: 24th June 2026
• 2nd Coupon Payment: 24th June 2027
• 3rd Coupon Payment: 24th June 2028
• 4th Coupon Payment: 24th June 2029
• Principal Redemption: 24th June 2029

Security and Default Provisions

The debentures are unsecured instruments with specific provisions for delayed payments. In case of payment delays exceeding three months from the due date, the company will pay an additional 2% per annum over the coupon rate on the outstanding principal amount from the end of the cure period until rectification.

Corporate Structure

TVS Holdings Limited, formerly known as Sundaram-Clayton Limited, operates from its registered office at "Chaitanya", No. 12, Khader Nawaz Khan Road, Nungambakkam, Chennai. The allotment was executed under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring full regulatory compliance and transparency for stakeholders.

TVS Holdings Limited has received credit rating updates from CARE Ratings Limited, with the rating agency reaffirming and assigning CARE AA+ stable ratings to the company's non-convertible debentures worth ₹950 crore.

Rating Details and Actions

CARE Ratings Limited, through its communication dated February 9, 2026, provided the following rating actions for TVS Holdings' debt instruments:

The rating agency's assessment factors in the group's diversified business investments across multiple sectors and TVS Holdings' role as a core investment company licensed by the Reserve Bank of India in March 2024.

Key Rating Strengths

The CARE AA+ rating is supported by several fundamental strengths of TVS Holdings. The company maintains a strong financial position through its substantial stake in TVS Motor Company Limited, holding 50.26% equity valued at approximately ₹88,699 crore as of February 2, 2026. This investment provides significant debt coverage of around 94 times against the company's gross debt of ₹944 crore as of December 31, 2025.

TVS Holdings operates as a holding company for key group entities including TVS Motor Company, Home Credit India Finance Private Limited, TVS Digital Limited, and TVS Holdings (Singapore) Pte. Limited. The company successfully completed the acquisition of Home Credit India Finance on February 3, 2025, now holding an 81.04% equity stake, which strengthens the group's presence in financial services.

Financial Performance and Structure

The company's financial metrics demonstrate robust capital structure management. As of December 31, 2025, TVS Holdings reported a tangible net worth of ₹1,510 crore, up from ₹1,463 crore as of March 31, 2025. The gearing ratio improved to 0.62 times from 0.64 times during the same period.

The company's revenue streams include dividend income from TVS Motor Company, brand royalties, and management fees from group entities. In FY25, TVS Holdings received ₹239 crore in dividends compared to ₹191 crore in FY24.

Strategic Developments

TVS Holdings has undergone significant corporate restructuring to position itself as a core investment company. In October 2024, the company discontinued its automotive spare parts trading business in compliance with RBI conditions. The company also divested its entire stake in TVS Emerald Limited for ₹485.85 crore in Q3FY25 as part of strategic realignment.

The Board approved a Scheme of Arrangement in September 2025 to issue 6% cumulative non-convertible redeemable preference shares worth an estimated ₹986.52 crore, offering 46 preference shares of ₹10 each for every equity share. This scheme remains subject to regulatory and shareholder approvals.

Rating Outlook and Sensitivities

CARE Ratings maintains a stable outlook, expecting TVS Holdings to sustain its financial flexibility through consistent income streams and adequate debt coverage. The rating could face positive action with significant improvement in TVS Motor Company's credit profile, while substantial decline in the flagship company's performance or increased debt levels reducing coverage below 10 times could trigger negative rating action.

The rating agency notes key monitoring factors including exposure to market value fluctuations of investments and dependence on dividend income from TVS Motor Company. The company's liquidity position remains strong, supported by healthy dividend inflows and the group's market access capabilities.

Source: TVS Holdings Limited regulatory filing and CARE Ratings Limited