TVS Motor To Acquire 39.11% Stake in DriveX Mobility

TVS Motor Company is a leading manufacturer of two-wheelers and three-wheelers based in India. It has announced its acquisition of a 39.11% stake in DriveX Mobility for ₹97.78 crore, bringing its total ownership in the company to 87.38%. This acquisition will make DriveX a subsidiary of TVS, expanding its presence in the two-wheeler trading market. 

Acquisition Details and Ownership Changes

The acquisition involves the purchase of 7,914 equity shares with a face value of ₹10 each from existing shareholders. This move raises TVS Motor’s ownership in DriveX Mobility to a controlling 87.38%. The company clarified that this transaction is not a related-party deal, although Sudarshan Venu, part of the TVS promoter group, holds a minor 0.59% stake in DriveX.

DriveX Mobility’s Overview

DriveX Mobility, a company focused on the trading and distribution of two-wheelers, reported a turnover of ₹33.99 crore for FY 2023-24 but incurred a loss of ₹30.98 crore. Despite its financial challenges, TVS Motor sees strategic value in the acquisition, anticipating improved operational efficiencies in the two-wheeler segment.

TVS Motor Share Performance

The stock of TVS motors currently trades at ₹2475.30 up by 1.68% from its previous day’s closing price. Over the past month, the stock has been up by 2.62%, While over the past year, the stock has given returns of 30%. The stock has made a 52-week high and 52-week low of ₹2,958.00 and ₹1850.05 respectively. The current market capitalisation of the company currently stands at ₹1.18 lakh crores.

Conclusion

TVS Motor has increased its stake in DriveX Mobility to 87.38% through a ₹97.78 crore acquisition of 7,914 equity shares. This transaction brings DriveX under TVS Motor’s control as a subsidiary, focusing on the trading and distribution of two-wheelers. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.