TVS Holdings Limited has informed the Exchange about Scheme of Arrangement
TVSHLTD · price
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Awaiting price reaction for this filing.
TVS Holdings Limited's Board has approved a Scheme of Arrangement under Sections 230-232 of the Companies Act, 2013, to issue bonus Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) to its shareholders. Shareholders will receive 46 NCRPS of INR 10 each for every 1 equity share held, with a total issue size of approximately INR 986.52 crore. The NCRPS carry a 6% per annum coupon and will be redeemed 12 months from the date of allotment, with funding coming from the company's general reserves and retained earnings (which stood at INR 1,456.26 crore as of 31 March 2025). The scheme is subject to NCLT, stock exchange, shareholder, and creditor approvals before it becomes effective.
For existing shareholders, this is effectively a bonus reward funded from the company's reserves, though NCRPS are redeemable preference shares (not equity) with no special voting rights. The 6% coupon provides a modest yield, but the redemption in 12 months means this is a short-term instrument. Shareholders should watch for the Record Date and NCLT approval timeline, as the stock may react to the bonus announcement once the record date is set.