TVS Holdings Limited, formerly known as Sundaram-Clayton Limited, has successfully received approval from the Reserve Bank of India (RBI) for the direct change in control of Home Credit India Finance Private Limited. This development follows the disclosures made on 10th May 2024 and 25th September 2024 under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The RBI, through a letter dated 29th November 2024, granted its approval for the change in shareholding/control of Home Credit India. The approval covers the transfer of 80.74% of equity shares to TVS Holdings Limited, 10.79% to PI Opportunities Fund II, and 8.47% to STPL Trading and Services Private Limited. This transaction aligns with the guidelines set by the Master Direction – Reserve Bank of India (Non-Banking Financial Company– Scale Based Regulation) Directions, 2023.

As part of this approval, the RBI has also sanctioned the appointment of key individuals to the board of Home Credit India:

• Mr. K Gopala Desikan will join as Non-Executive Director.
• Mr. B Sriram and Dr. Deepali Pant Joshi will join as Independent Directors.

This change in control is a significant move for TVS Holdings, enhancing its strategic influence over Home Credit India, a leading player in the financial services sector. These developments are crucial for investors and market participants who are closely monitoring the impact of this acquisition on the business landscape. The RBI has outlined several conditions for the approval, including:

• Consolidation of non-banking financial companies (NBFCs) within 30 months.
• Compliance with regulations, including the Master Direction on Non-Banking Financial Companies.
• Adherence to filing and reporting requirements mandated by the RBI.
  
  

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The approval further specifies that Home Credit India must notify the RBI of the exact date when the proposed shareholders officially acquire the shares. Additionally, a 30-day prior public notice is required before the transaction can proceed.

This approval from the RBI is subject to several conditions, including ensuring that TVS Holdings complies with regulatory frameworks such as the Companies Act, 2013, the Foreign Exchange Management Act, 1999, and other relevant statutes. The RBI also notes that in case any adverse information regarding the proposed shareholders comes to light, it may reconsider the approval or impose additional conditions.

Impact on TVS Holdings and the Market
The approval from the RBI signals a crucial step forward for TVS Holdings as it moves towards completing its acquisition and taking a significant role in Home Credit India's operations. This change in control has the potential to reshape the financial services landscape, creating opportunities for TVS Holdings to enhance its presence in the growing Indian financial sector.

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