TVS Motor Company said on Wednesday, October 28, that its board has approved a composite scheme of arrangement to demerge its consumer finance and related businesses into a separate company, Harita ARC Limited, in a restructuring aimed at giving the finance arm strategic focus and autonomy.
Source: The Hindu BusinessLine — TVS Motor plans demerger of its consumer finance businesses
Under the proposed scheme, shareholders of TVS Motor will receive one share in the resulting finance company for every one TVS Motor share they hold, so the new entity will begin with the same ownership structure as the parent.
What moves, and what stays
The demerged undertaking covers lending, investments, leasing and associated support services, including TVS Motor's investment in TVS Credit Services. The demerged unit recorded turnover of about Rs 3,921 crore (yaani about Rs 39.21 billion) for the period ended September 30, 2026, out of TVS Motor's total turnover of Rs 35,770 crore, according to the company's filings.
Source: Autocar Professional — TVS Motor plans consumer finance demerger, TVS Motor Services merger
To house the business, TVS Motor is acquiring Harita ARC from TVS Credit Services Limited for Rs 25,000 in cash; Harita ARC will become a wholly-owned subsidiary of TVS Motor and then the entity that holds the consumer finance businesses after the demerger. In the same composite scheme, wholly-owned subsidiary TVS Motor Services Limited will be amalgamated with TVS Motor Company.
The plan is a proposal at this stage, not a completed separation. It remains subject to approvals from the stock exchanges, the Securities and Exchange Board of India (SEBI), the jurisdictional National Company Law Tribunal, and the shareholders and creditors of the companies involved.
Source: ScanX — TVS Motor approves demerger of consumer finance business into separate entity
Once effective, the restructuring would leave investors holding two separately listed businesses — TVS Motor focused on automotive and mobility operations, and a dedicated financial-services company — instead of one combined group.