TVS Motor Acquires Majority Stake in DriveX Mobility: Key Details Unveiled

BY ADMIN • FILED 29 Nov 2024, 6:22 PM

TVS Motor Company Limited has announced a significant acquisition, increasing its stake in DriveX Mobility Private Limited (“DriveX”) to 87.38%. This follows the signing of a share purchase agreement on November 29, 2024, through which TVS Motor will acquire an additional 39.11% equity stake for ₹97.78 crore.

Key Highlights of the Acquisition:

DriveX Overview: Established on April 1, 2020, DriveX operates in the trading and distribution sector, focusing on leasing, selling, trading, and distributing pre-owned two-wheelers such as motorcycles and scooters. Its operations exclude bicycles and electric bicycles.
Financial Performance: For the fiscal year 2023-24, DriveX reported a turnover of ₹33.99 crore, a net loss of ₹30.98 crore, and a net worth of ₹43.30 crore.
Ownership Changes: TVS Motor’s stake in DriveX will increase from 48.27% to 87.38%, making DriveX a subsidiary.
Transaction Structure: The acquisition is not categorized as a related party transaction, even though Sudarshan Venu, a member of the TVS Motor promoter group, holds a 0.59% stake in DriveX. The deal is conducted at arm’s length and does not require any regulatory or governmental approvals.
Completion Timeline: The transaction is expected to be finalized within 30 days of the agreement.

Strategic Goals

This acquisition aligns with TVS Motor’s growth strategy, enabling the company to utilize its operational expertise to enhance DriveX’s efficiency and customer service offerings.

DriveX Turnover (Past Three Years):

FY 2023-24: ₹33.99 crore
FY 2022-23: ₹5.79 crore
FY 2021-22: ₹8.65 crore

By bringing DriveX under its control, TVS Motor aims to solidify its position in the two-wheeler market, particularly in the pre-owned segment, while driving operational improvements and customer satisfaction.