TVS Holdings to Acquire Varthana Finance Through Home Credit India in ₹967 Crore Deal

TVS Holdings Ltd has announced that its subsidiary, Home Credit India Finance Private Limited, has signed a Share Purchase Agreement (SPA) to acquire 100% of the equity share capital of Varthana Finance Private Limited for ₹967 crore, subject to customary adjustments.

The acquisition is subject to approvals from the Reserve Bank of India (RBI) and other statutory and regulatory authorities, as well as the fulfilment of conditions outlined in the agreement. Following the completion of the transaction, Varthana Finance will become a wholly owned subsidiary of Home Credit India and an indirect wholly owned subsidiary of TVS Holdings.

Acquisition to Expand Education-Focused Lending Portfolio

TVS Holdings said the proposed acquisition is aimed at strengthening its presence in the financial services sector by expanding its lending portfolio through Varthana Finance's education-focused business.

Varthana Finance, formerly known as Thirumeni Finance Private Limited, is a non-banking financial company (NBFC) that provides financing to schools, colleges, educational institutions, tutorial centres, vocational training institutes, and other organisations operating in the education sector.

The transaction will be completed through a cash consideration of ₹967 crore and is expected to close within nine months from the execution of the SPA, subject to regulatory approvals and other customary closing conditions.

Varthana Finance Reported ₹398 Crore Turnover in FY26

For FY26, Varthana Finance reported a turnover of ₹398.31 crore, while its profit after tax stood at ₹18.65 crore. The company had a net worth of ₹574.23 crore during the financial year.

TVS Holdings also clarified that the acquisition does not qualify as a related-party transaction. It added that neither the company's promoters, promoter group, nor its group companies have any interest in Varthana Finance.

Conclusion

The proposed acquisition reflects TVS Holdings' strategy of expanding its financial services business through Home Credit India. By bringing Varthana Finance under its umbrella, the group is set to strengthen its presence in the education finance segment. The transaction is expected to be completed within nine months, subject to RBI approval and other regulatory clearances.

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