Disclosure under Regulations 30 and 51(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in relation to approval of the Scheme of Arrangement between TVS Motor Company Limited and its shareholders - certified copy of the order is enclosed
TVSMOTOR · price
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TVS Motor Company has received the certified copy of the NCLT Chennai order sanctioning its Scheme of Arrangement with shareholders. Under this scheme, the company will issue 4 Bonus Redeemable Preference Shares of face value Rs. 10 each for every 1 equity share held, taking the total issue size to about Rs. 1,900.35 crore. The preference shares will carry a 6% per annum coupon (payable at redemption), have a 12-month tenure from the date of allotment, and will be listed on both BSE and NSE. The bonus will be funded from the company's general reserves and retained earnings, which stood at Rs. 7,574 crore as of December 31, 2023. The authorized share capital will increase to Rs. 2,050 crore to accommodate the new preference shares. The scheme aims to reward shareholders using surplus cash while giving the company flexibility to manage liquidity until redemption.
Shareholders will receive 4 listed redeemable preference shares for every equity share held, effectively receiving a near-cash, tradable instrument funded from surplus reserves. This is a value distribution event rather than a dilution of equity, and the preference shares will trade on exchanges, providing liquidity to investors.