Premji Invest & Carlyle eye a stake in auto loan company TVS Credit: Report
The winner of the race could get a stake of 20 per cent and a valuation of Rs 5,000 crore for TVS is also being discussed for this.
- May 2, 2023,
- Updated May 2, 2023 4:13 PM IST
Private equity company Carlyle and IT giant Wipro’s investment arm Premji Invest are in separate talks to invest about $150 million in TVS Credit Services, the financial services arm of auto giant TVS Motors, according to a report by Reuters. The winner of the race could get a stake of 20 per cent and a valuation of Rs 5,000 crore ($612 million) for TVS is also being discussed for this, sources told Reuters. TVS Credit mainly offers loans for two-wheeler vehicles and used cars. Recently, it expanded into personal and consumer loans. In addition, it also forayed into pre-approved credit via credit cards for items such as mobile phones. The sources also stated that Carlyle engaged with the company a few months ago but Premji Invest is winning the race of striking the deal. Moreover, a decision is expected to be in by the end of May. "There are two components to this business - the older, stable motor-financing arm and the new-age loans and services, which can be an add-on growth lever," the second source said.
Carlyle and TVS declined to comment on the story. Premji Invest, on the other hand, did not reply to queries sent by Reuters. TVS Credit’s total income grew by 14 per cent to reach Rs 1090 crore for the quarter that ended on December 31. The net profit stayed nearly flat at Rs 97.9 crore, the unaudited financial statements available on the website revealed.
Also Read: BharatPe acquires majority stake in Mumbai-based NBFC Trillion Loans
Private equity company Carlyle and IT giant Wipro’s investment arm Premji Invest are in separate talks to invest about $150 million in TVS Credit Services, the financial services arm of auto giant TVS Motors, according to a report by Reuters. The winner of the race could get a stake of 20 per cent and a valuation of Rs 5,000 crore ($612 million) for TVS is also being discussed for this, sources told Reuters. TVS Credit mainly offers loans for two-wheeler vehicles and used cars. Recently, it expanded into personal and consumer loans. In addition, it also forayed into pre-approved credit via credit cards for items such as mobile phones. The sources also stated that Carlyle engaged with the company a few months ago but Premji Invest is winning the race of striking the deal. Moreover, a decision is expected to be in by the end of May. "There are two components to this business - the older, stable motor-financing arm and the new-age loans and services, which can be an add-on growth lever," the second source said.
Carlyle and TVS declined to comment on the story. Premji Invest, on the other hand, did not reply to queries sent by Reuters. TVS Credit’s total income grew by 14 per cent to reach Rs 1090 crore for the quarter that ended on December 31. The net profit stayed nearly flat at Rs 97.9 crore, the unaudited financial statements available on the website revealed.
Also Read: BharatPe acquires majority stake in Mumbai-based NBFC Trillion Loans