TVS Holdings plans bonus issue of preference shares

TVS Holdings announced its board's approval on September 22, 2025, for a Scheme of Arrangement to issue Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) by way of bonus. The scheme entails allotting 46 NCRPS of INR 10/- each, fully paid up, for every 1 equity share of INR 5 each, fully paid up, held by shareholders on the record date. The NCRPS, amounting to approximately INR 986.52 crore, will carry a 6% per annum coupon rate and will be redeemed 12 months from the date of allotment out of the company's profits.

The bonus issuance will utilize the company's general reserves and retained earnings, which stood at INR 1,456.26 crore as of March 31, 2025 (audited figures). The NCRPS are proposed to be listed on both the National Stock Exchange of India Limited and BSE Limited.

The scheme remains subject to necessary statutory, regulatory, and customary approvals, including those from stock exchanges, the National Company Law Tribunal, and the company's shareholders and creditors. Allotment of the bonus NCRPS will occur after NCLT approval and on the effective date.