TVS Motor Financing Arm Looks To Raise $150 Million
- ByStartupStory | December 15, 2022
TVS Credit Services Ltd, the vehicle financing arm of Indian multinational motorcycle manufacturer TVS Motors looks to raise $150million. The raise is through a share sale and existing investors might cut off their holdings. The deal is expected to be worth the Chennai-based non-banking monetary firm at around $800 million and the company is owned 85% by two-wheeler maker TVS Motor.
“Strong systems and processes are expected to enable TVS Credit to maintain sound asset quality. While there was an uptick in delinquencies due to the impact of Covid-19 pandemic, the same has come down in recent quarters,” credit rating agency Crisil stated.
Also according to their report TVS Credit is integral to TVS Motor’s planning of growing its market share in the domestic automobile market as it is a captive financing unit. TVS Credit finances 20-26% of the parent’s domestic sales by volume and TVS Motor has infused ₹792 crore into TVS Credit since FY12, bringing its net worth to ₹1,864 crore and gearing of 7.0 times as on March-end 2022.
TVS Credit began in 2008 and it was registered with the Reserve Bank of India as a Non-Deposit taking Non-Banking Finance company with effect from 2010. The Company based in Chennai is a captive finance company . Ashish Sapra as its new CEO of TVS credit after the retirement of G Venkatraman in 2022.
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