TVS Motor has announced a major reward for its equity shareholders through a Scheme of Arrangement approved by NCLT.
What’s Happening?
For every 1 equity share of TVS Motor (face value ₹1), shareholders will receive 4 fully paid Redeemable Preference Shares (RPS) of ₹10 each, issued free of cost from the company’s reserves.
Key Details:
- Bonus Ratio: 1 equity share = 4 preference shares
- Face Value: ₹10 each
- Coupon: 6% per annum, payable at redemption
- Tenure: 12 months from allotment
- Listing: Will be listed on BSE and NSE, tradeable before redemption
- Source of Funds: Utilisation of surplus reserves
- Record date: 25 August 2025
Why This Matters:
TVS Motor is rewarding shareholders by distributing excess reserves in the form of a near-cash instrument. This provides additional income (6% coupon) and liquidity flexibility, without affecting existing equity holdings.
What Should You Do?
No action is needed. Eligible shareholders will automatically receive the bonus preference shares in their demat accounts.
