TVS Motor to demerge consumer finance business into new holding company

TVS Motor Company's Board of Directors has approved a Composite Scheme of Arrangement to demerge its consumer finance and related business undertaking into a separate holding company. This move aims to unlock shareholder value by creating a focused platform for the financial services segment, providing greater strategic autonomy and capital allocation flexibility. Shareholders will receive an equal number of shares in the new entity, allowing participation in both mobility and financial services growth. The demerger follows the earlier consolidation of the Group's consumer finance businesses into a single operating platform. Additionally, TVS Motor Services, a wholly-owned subsidiary, will be merged with the company to streamline the corporate structure. The company also approved acquiring a controlling interest in STPL Trading and Services Private Limited, which is merging with TVS Credit Services.