TVS Motor Company Limited has informed the Exchange about Scheme of Arrangement between TVS Motor Company Limited and its shareholders
TVSMOTOR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 1.9 pts more than Nifty 100 and 1.5 pts more than its 2/3 Wheelers peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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The National Company Law Tribunal (Chennai Bench) has sanctioned TVS Motor's Scheme of Arrangement with its shareholders, paving the way for a bonus issue of Redeemable Preference Shares (RPS). Under the scheme, shareholders will receive 4 bonus RPS of face value Rs. 10 each for every 1 equity share held, taking the total size to about Rs. 1,900.35 crore. The RPS will carry a 16% per annum coupon, payable at redemption, and must be redeemed within 12 months of allotment. They will be listed on both BSE and NSE, giving shareholders a tradable, near-cash instrument. The issue will be funded entirely out of the company's general reserves and retained earnings, which stood at roughly Rs. 7,574 crore as of December 31, 2023.
Existing equity shareholders will receive bonus preference shares on the record date, effectively a capital distribution from surplus reserves. The stock price is likely to adjust downward to reflect the value being returned to shareholders. Shareholding pattern remains unchanged as only existing holders receive the RPS, and the company retains liquidity flexibility until redemption.