Sudarshan Venu family trusts pledge TVS shares to fund TSF stake buy

Mumbai: Two trusts associated with the Sudarshan Venu family have raised ₹825 crore by pledging shares representing nearly 20% of TVS Holdings' equity to finance the acquisition of the remaining stake held by the extended family's Trichur Santhanam Sundaram (TSF) group, officials close to the matter told ET.

The acquisition will increase Sudarshan Venu's holding in TVS Holdings to 73.35% from 69.62%, marking a further consolidation of ownership within the Venu Srinivasan branch of the TVS family, said the officials cited above.

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According to regulatory filings, VS Trust has raised a term loan of ₹265 crore, while Srinivasan Trust has secured facilities of ₹165 crore and ₹395 crore. The loans were extended by JM Financial Products and JM Financial Credit Solutions, with pledge agreements executed on October 26. The aggregate encumbered holding stands at 4,036,000 shares, representing 19.95% of TVS Holdings' equity.

The funds are being used to finance the acquisition of the remaining shares held by the TSF family following the broader TVS Group partition. The latest transaction completes the acquisition of the final 3% stake held by the branch, officials close to the matter said.

TVS did not comment.

The transaction marks another step in the gradual realignment of ownership within the extended TVS family.

Venu Srinivasan and his son Sudarshan have been progressively acquiring shares held by other family branches, including interests routed through Sundaram Clayton and the TSF group.

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The increase in Sudarshan's holding is significant because TVS Holdings is the holding company through which the Venu family has a controlling interest in TVS Motor Company, the group's flagship two-wheeler business. Its portfolio spans automotive and financial services, with TVS Motor and Home Credit India Finance among its key businesses. TVS Holdings reported consolidated revenue of ₹20,183 crore in the second quarter of FY27, an increase of 39% over the corresponding period last year, reflecting the scale of the businesses under its umbrella.

Its flagship company, TVS Motor, has also been reporting strong growth. In the second quarter of FY27, it posted revenue of ₹17,103 crore, a 44% increase over the corresponding quarter last year. Ebitda, a measure of operating performance, grew 47%, while profit after tax rose 52% to ₹1,377 crore. Two- and three-wheeler sales increased 27% to 1.9 million units. The performance underscores the growing scale of the business as Sudarshan assumes greater responsibility for its next phase of expansion.

A higher stake consolidates the family's economic interest in the holding company and strengthens Sudarshan's position within the ownership structure as he assumes a larger role in the group's businesses.

The TSF branch traces its lineage to late TS Santhanam, founder of Sundaram Finance and younger brother of late TS Srinivasan, Venu Srinivasan's father. Santhanam's descendants manage businesses across financial services and automotive manufacturing, including Sundaram Finance, Wheels India and Brakes India. The branch is one of the principal constituents of the wider TVS Group, founded by TV Sundram Iyengar.

Venu Srinivasan was designated chairman emeritus of TVS Motor Company effective April 1, 2022, while continuing as managing director. Sudarshan, who had earlier been elevated as managing director, subsequently became chairman and managing director on August 25, 2025.