TVS Holdings Board Clears Bonus Issue of Preference Shares Worth ₹986.5 Crore

Chennai, September 22, 2025: TVS Holdings Limited (NSE: TVSHLTD, BSE: 520056), formerly known as Sundaram-Clayton Limited, has announced that the board of directors of the company has approved a Scheme of Arrangement for the issuance of NCRPS (Cumulative Non-Convertible Redeemable Preference Shares) through a bonus issue to the existing shareholders. This corporate action will result in an issue size of ₹986.52 crore, and the preference shares are proposed to be listed on both NSE and BSE.

The stock started in the green, but the selling pressure mounted a couple of hours into the morning session. At 12:30 PM, the stock traded at ₹13,243.00 (1.38% down from the previous day’s closing price). Even after a bit of a fall in the past five days, the stock has managed to surge around 10.25% in the previous month.

Key Highlights of the Bonus NCRPS Issue

The company has announced a Bonus Issue of Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) in the ratio of 46 NCRPS of ₹10 each for every 1 equity share of ₹5 held. With a face value of ₹10, the total issue size stands at around ₹986.52 crore.

The NCRPS will carry a coupon rate of 6% per annum and will be redeemable at par, along with the coupon, after 12 months from allotment. Proposed to be listed on NSE and BSE, the issue will be funded entirely from the company’s general reserves and retained earnings of ₹1,456.26 crore as of March 31, 2025.

Impact on Share Capital

Even though offered as part of a corporate action, the issue of preference shares will have a direct impact on the paid-up capital of the company, which will increase from the existing ₹10.12 crore to ₹940.79 crore (including the ₹930.68 crore of the preference shares). NCRPS does not have any special rights or privileges beyond the periodic coupon. There will be an increase in the paid-up capital of the company with no change in the equity share capital.

This move strengthens TVS Holdings’ capital structure by returning value to shareholders while conserving equity. By opting for preference shares with a fixed maturity and coupon, the company balances shareholder rewards with prudent financial planning.

REF:https://nsearchives.nseindia.com/corporate/SUNCLAYLTD_22092025142938_TVSHBMoutcomeSGD.pdf

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