Upon completion of the transaction, Varthana Finance will become a wholly owned subsidiary of Home Credit India and a step-down wholly owned subsidiary of TVS Holdings.
The proposed acquisition is subject to approvals from the Reserve Bank of India (RBI) and other statutory and regulatory authorities, along with the fulfilment of conditions under the SPA.
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Varthana Finance, formerly known as Thirumeni Finance Private Limited, is a non-banking financial company (NBFC) engaged in providing credit facilities and financial services to schools, colleges, educational organisations, tutorial centres, vocational training institutes and other entities in the education sector.
For FY26, Varthana Finance reported a turnover of ₹398.31 crore, profit after tax of ₹18.65 crore, and net worth of ₹574.23 crore.
The acquisition will be completed through cash consideration, with the transaction expected to close within nine months from the execution of the SPA, subject to regulatory approvals and other conditions precedent.
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TVS Holdings said the acquisition is intended to expand the group’s presence in the financial services sector by adding Varthana’s education finance business to its lending platform.
The company said the transaction is not a related-party transaction, and neither the promoters, promoter group nor group companies have any interest in the target company.
Sudarshan Venu, Chairman, TVS Motor Company, said, “India’s financial services sector continues to offer significant opportunities for long-term growth, driven by rising formalisation, expanding credit access and the increasing need for specialised lending solutions. As we continue to build and scale our financial services platform, we remain focused on supporting high-quality institutions that address important customer needs across segments.
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Varthana has built a differentiated franchise within the education-finance ecosystem, with deep expertise in a specialised lending segment and a strong reputation among the institutions it serves. The proposed acquisition will broaden our participation in secured and longer-tenure lending while complementing the Group’s existing strengths.”
Steve Hardgrave, Whole-time Director and Executive Vice Chairman, Varthana, said, “We look forward to joining forces with TVS as we continue to support private schools throughout the country.
The TVS legacy of trust that has empowered millions of customers across India is closely aligned with Varthana’s mission and values. TVS’s deep roots, extensive resources and operational excellence will help strengthen our platform, expand our reach and support the next phase of Varthana’s growth.”
Shares of TVS Holdings Ltd ended at ₹14,019.95, up by ₹6.30, or 0.045%, on the BSE.
