Chennai-based TVS Holdings, formerly Sundaram-Clayton, has announced that its board of directors will meet on September 22 to consider a proposal to issue cumulative non-convertible redeemable preference shares (NCRPS) as a bonus to shareholders.

If approved, the issue of bonus preference shares would mark a capital restructuring step for the TVS group holding company, which has interests across two-wheelers, auto components, and financial services.

Unlike equity shares, cumulative non-convertible redeemable preference shares do not carry voting rights but entitle holders to fixed dividends, which accumulate if unpaid, and can be redeemed at a later date.

Such an issuance, if executed, could help reward existing shareholders while also strengthening the company’s long-term capital structure.

The decision to opt for preference shares instead of equity also suggests the company’s intent to balance rewarding investors with maintaining its control and equity base.

TVS Holdings, headquartered in Chennai’s Nungambakkam, has undergone key transformations in recent years, including its rebranding from Sundaram-Clayton to TVS Holdings.The company acts as the holding arm of the larger TVS Group, which has been expanding its footprint across mobility solutions, electric vehicles, and global operations.Through its subsidiaries and associates, TVS Holdings has interests in two-wheeler manufacturing, electric vehicle initiatives, and global operations. The company provides strategic direction to the wider TVS ecosystem while balancing shareholder value creation with sustainable business growth.

The upcoming board meeting will provide clarity on the ratio of bonus preference shares, the dividend terms, and redemption timelines.