Carlyle, the private equity firm, and the investment unit of Azim Premji, former Wipro chairman, are reportedly in separate talks to invest around $150 million in TVS Credit Services, an arm of TVS Motors.
A Reuters report on Tuesday said the winner of the race to bet on India’s fast-growing shadow-banking sector could get a stake of 20 per cent.
Quoting sources, it added that a valuation of about Rs 5,000 crore ($612 million) for TVS Credit is being discussed.
According to the company’s website, it has more than 130 offices, and a presence across 31,000 distribution network points in the country.
The firm is claimed to have served over 9.4 million customers. It provides loans for two-wheelers, three-wheelers, used cars, tractors, commercial vehicles along with business loans and consumer durable loans.
While it obtained a licence from the RBI in 2009-10, it crossed a book size of Rs 13,911 crore in 2021-22.
Shares of group firm TVS Motor Company on Tuesday ended at Rs 1,158.60 on the BSE, a gain of 1.89 per cent over the last close.
The firm had recently said that it recorded a growth of 4 per cent with sales increasing from 295,308 units in the month of April 2022 to 306,224 units in April 2023.
Private equity funds bet $2.2 billion on India’s non-bank financial services companies last year, up 57 per cent 272 from 2021, a report from Bain and Co showed.
