Description

TVS Motor Company Limited has listed 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) on BSE and NSE, issued as bonus shares aggregating to ₹1,900.35 crore.

Summary

TVS Motor Company Limited has issued and listed 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) on BSE and NSE pursuant to a Scheme of Arrangement. The NCRPS were issued as bonus shares to existing equity shareholders, with 4 NCRPS of face value ₹10 each for every 1 equity share held on the Record Date (August 25, 2025), aggregating to ₹19,00,34,84,560 (approximately ₹1,900.35 crore).

Key Points

  • Instrument: 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) of TVS Motor Company Limited
  • Face Value: ₹10 per share
  • Issue Size: 1,90,03,48,456 NCRPS aggregating to ₹19,00,34,84,560
  • Issue Type: Bonus issue (no cash consideration) funded from general reserves/retained earnings
  • Ratio: 4 NCRPS for every 1 equity share of ₹1 each held on the Record Date
  • Record Date: August 25, 2025
  • Listing: BSE and NSE; NSE is the Designated Stock Exchange
  • Nature: Unsecured
  • Rating: “A1+” by CARE Ratings Limited (rated September 5, 2025; revalidated January 23, 2026)
  • Seniority: Senior to equity shareholders; pari passu with other preference shares; subordinate to secured and unsecured creditors

Regulatory Changes

No new regulatory changes. This circular pertains to the listing of securities issued under a Scheme of Arrangement approved by the Board of Directors.

Compliance Requirements

  • The NCRPS are listed on both BSE and NSE in accordance with applicable listing regulations.
  • NSE is designated as the Designated Stock Exchange for regulatory compliance purposes.
  • The Company (CIN: L35921TN1992PLC022845) must comply with ongoing disclosure and listing obligations for the listed preference shares.

Important Dates

  • Record Date: August 25, 2025 (eligibility date for bonus NCRPS allotment)
  • CARE Rating Date: September 5, 2025 (original rating)
  • CARE Rating Revalidation: January 23, 2026
  • Circular/Listing Date: March 6, 2026
  • Document Reference Date: February 13, 2026 (principal terms and conditions document)

Impact Assessment

Existing equity shareholders of TVS Motor Company as of August 25, 2025 receive 4 NCRPS for every 1 equity share held, providing them with a fixed 6% cumulative return on the preference shares. This is a non-cash corporate action funded from the company’s general reserves. The listing on both major exchanges provides liquidity to preference shareholders. The “A1+” rating from CARE Ratings signals high credit quality. The total issue size of ~₹1,900 crore is significant in scale. Creditors are not adversely affected as NCRPS holders rank subordinate to all creditors.

Impact Justification

Significant capital market event for TVS Motor Company involving listing of preference shares worth ~₹1,900 crore issued as bonus to existing equity shareholders; affects existing shareholders but is a non-cash corporate action.