Description

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

Summary

TVS Motor Company Limited has listed 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) on BSE and NSE. The NCRPS were issued as bonus shares to equity shareholders on the record date of August 25, 2025, utilizing the company’s general reserves/retained earnings. The total issue size is ₹1,900.35 crore comprising 1,90,03,48,456 NCRPS of face value ₹10 each.

Key Points

  • Instrument: 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) of face value ₹10 each
  • Issuer: TVS Motor Company Limited (CIN: L35921TN1992PLC022845)
  • Total issue size: 1,90,03,48,456 NCRPS aggregating to ₹19,00,34,84,560 (approx. ₹1,900.35 crore)
  • Nature: Unsecured
  • Issued as bonus: 4 NCRPS for every 1 equity share of ₹1 each held on record date
  • Record date: August 25, 2025
  • Listed on both BSE and NSE; NSE is the Designated Stock Exchange
  • Credit rating: “A1+” by CARE Ratings Limited (original letter dated September 5, 2025; revalidated January 23, 2026)
  • NCRPS holders rank senior to equity shareholders but subordinate to secured and unsecured creditors
  • NCRPS rank pari passu with all other preference shares issued by the company

Regulatory Changes

No new regulatory changes. The listing follows a Scheme of Arrangement approved by the Board of Directors for issuance of NCRPS by way of bonus shares utilizing general reserves/retained earnings.

Compliance Requirements

  • The company has complied with BSE listing requirements for new securities
  • NCRPS are listed and available for trading on BSE and NSE
  • NSE designated as the primary/Designated Stock Exchange for this instrument

Important Dates

  • Record date for allotment: August 25, 2025
  • Rating letter date: September 5, 2025
  • Rating revalidation date: January 23, 2026
  • Circular/listing date: March 6, 2026

Impact Assessment

The listing of NCRPS has a moderate impact on TVS Motor Company’s capital structure. Existing equity shareholders as of August 25, 2025 received 4 NCRPS for every 1 equity share held, representing a significant bonus distribution from company reserves. The unsecured nature and subordination to creditors limits downside risk for lenders. The 6% cumulative dividend rate provides a fixed return to preference shareholders. The “A1+” rating from CARE Ratings signals strong creditworthiness for this instrument. The large issue size of ~₹1,900 crore increases the company’s preference share capital base substantially.

Impact Justification

Large-scale preference share listing of ₹1,900 crore via bonus issue affects existing equity shareholders of TVS Motor Company; impacts capital structure but no cash outflow as it utilizes general reserves.