Representative image
MUMBAI: Home Credit India Finance, a subsidiary of TVS Holdings, signed a share purchase agreement on Wednesday, to acquire Varthana Finance which specialises in lending for education, in an all-cash deal valued at Rs 967 crore.The transaction will result in Varthana becoming a wholly owned subsidiary of Home Credit India, and a step-down wholly owned subsidiary of TVS Holdings after completion. Besides Home Credit, TVS group has a presence in financial services through TVS Credit Services, with offerings across consumer, retail, and commercial finance.The acquisition is expected to help diversify the portfolio, improve business mix, and create synergies in distribution, technology, and risk management.The acquisition is subject to regulatory approvals, is expected to conclude within nine months from the execution of the SPA. The transaction is in the non-banking financial services sector and aims to expand the acquirer’s presence in secured and longer-tenure lending.
