Description

TVS Motor Company Limited has listed 1,90,03,48,456 bonus NCRPS of face value ₹10 each (aggregating ₹19,00,34,84,560) on BSE and NSE, issued via a Scheme of Arrangement at a ratio of 4 NCRPS per 1 equity share held on the record date.

Summary

TVS Motor Company Limited has listed 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) on BSE and NSE. The NCRPS were issued as a bonus to eligible equity shareholders via a Board-approved Scheme of Arrangement, utilizing the company’s general reserves/retained earnings. A total of 1,90,03,48,456 NCRPS of face value ₹10 each were issued, aggregating to ₹19,00,34,84,560.

Key Points

  • Instrument: 6% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS), face value ₹10 each
  • Issuer: TVS Motor Company Limited (CIN: L35921TN1992PLC022845)
  • Issue type: Bonus issue (no cash outflow for shareholders)
  • Ratio: 4 NCRPS for every 1 equity share of ₹1 each held on the record date
  • Total NCRPS issued: 1,90,03,48,456 shares
  • Total issue size: ₹19,00,34,84,560
  • Listed on both 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)

Regulatory Changes

No new regulatory changes. The listing is pursuant to a Scheme of Arrangement approved by the Board of Directors and complies with existing SEBI and exchange listing requirements.

Compliance Requirements

  • The company must maintain listing compliance on both BSE and NSE for the newly listed NCRPS.
  • Seniority structure must be maintained: NCRPS holders rank senior to equity shareholders, pari passu with other preference shareholders, and subordinate to secured and unsecured creditors.

Important Dates

  • Circular/document date: February 13, 2026 (principal terms document)
  • Record date for eligibility: August 25, 2025
  • CARE Rating date: September 5, 2025 (revalidated January 23, 2026)
  • BSE listing circular date: March 6, 2026

Impact Assessment

Existing equity shareholders of TVS Motor Company as of August 25, 2025 received 4 NCRPS for every 1 equity share held, funded from the company’s general reserves. The listing of these NCRPS on BSE and NSE creates a new tradeable security. The unsecured nature and subordination to creditors are standard for preference shares. The “A1+” rating reflects high credit quality. The large issue size (₹19,00,34,84,560) signals significant capital allocation but does not dilute equity, as it draws from retained earnings.

Impact Justification

Significant listing event involving a large-scale bonus issuance of preference shares by a major listed company, affecting existing equity shareholders; no immediate trading disruption but creates new listed securities.