TVS Motor Company , a leading player in the Indian automotive industry, has made a significant move in the electric vehicle (EV) sector with the launch of its new TVS King Kargo HD EV. This electric vehicle is specifically designed to cater to the growing needs of the urban logistics market.

Product Highlights

The TVS King Kargo HD EV comes with a price tag of ₹3.85 lakhs, positioning it as a competitive option in the commercial EV segment. This strategic pricing aims to attract businesses looking for cost-effective and environmentally friendly transportation solutions for urban logistics.

Features and Specifications

While detailed specifications are not provided, the company has emphasized that the TVS King Kargo HD EV is equipped with advanced connectivity and safety features. These enhancements are likely to address the specific requirements of the logistics industry, potentially offering benefits such as:

• Improved route optimization
• Real-time tracking capabilities
• Enhanced driver safety measures
• Increased cargo capacity compared to traditional vehicles in its class

Market Implications

The launch of the TVS King Kargo HD EV signifies TVS Motor Company's commitment to the electric vehicle market, particularly in the commercial sector. By targeting the urban logistics segment, TVS is positioning itself to capitalize on the growing demand for sustainable last-mile delivery solutions in India's rapidly expanding e-commerce and urban delivery markets.

Industry Context

This move by TVS Motor Company aligns with the broader trend in the automotive industry towards electrification. As cities increasingly focus on reducing emissions and improving air quality, electric commercial vehicles like the TVS King Kargo HD EV are likely to play a crucial role in the transformation of urban logistics.

The introduction of this electric vehicle not only demonstrates TVS Motor Company's innovation in product development but also its responsiveness to evolving market needs and environmental considerations. As the adoption of electric vehicles in the commercial sector continues to grow, TVS's latest offering could potentially strengthen its position in this competitive market segment.

TVS Motors , a leading two and three-wheeler manufacturer, has received approval from the National Company Law Tribunal (NCLT), Chennai Bench, for its Scheme of Arrangement to issue bonus preference shares to its equity shareholders. The scheme, which aims to reward shareholders by distributing surplus reserves, marks a significant move for the company.

Key Details of the Scheme

• Bonus Ratio: For every 1 equity share held, shareholders will receive 4 bonus preference shares.
• Face Value: Each preference share will have a face value of INR 10.00.
• Nature of Shares: 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS).
• Record Date: Set for August 25, 2025, to determine eligible shareholders.
• Redemption Period: 12 months from the date of allotment.
• Listing: The preference shares will be listed on BSE and NSE.

Financial Implications

The company will utilize its general reserves and retained earnings to issue these bonus preference shares. As of December 31, 2023, TVS Motor's free reserves and retained earnings stood at INR 7,574.00 crore, which is sufficient to cover the redemption obligation of approximately INR 1,900.00 crore for the bonus preference shares.

Impact on Authorized Share Capital

Following the scheme's implementation, TVS Motor's authorized share capital will automatically increase to INR 2,050.00 crore, comprising:

• 50 crore equity shares of Re 1.00 each
• 200 crore preference shares of INR 10.00 each

Safeguards for Existing Debenture Holders

The company has assured that the scheme will not affect the existing Non-Convertible Debenture (NCD) holders. The terms and conditions of the NCDs, including coupon rate, tenure, and security, will remain unchanged. As of December 31, 2023, the outstanding amount towards NCDs stood at INR 125.00 crore.

Management's Perspective

The company stated, "The surplus reserves are well above the Company's current and likely future business needs. The Company has concluded that it can optimally utilize its surplus reserves by distributing a considerable portion of the same to its equity shareholders."

Next Steps

TVS Motor Company will now proceed with the implementation of the scheme, including setting the record date and issuing the bonus preference shares. The company will also make necessary filings with the Registrar of Companies for the increase in authorized share capital.

This move by TVS Motor Company demonstrates its commitment to enhancing shareholder value while maintaining a strong financial position for future growth. The issuance of bonus preference shares provides shareholders with a near-cash instrument while offering the company flexibility in managing its liquidity until redemption.

Investors and shareholders should note the upcoming record date and stay informed about further announcements from the company regarding the implementation of this scheme.