TVS Motor Acquires Additional 39.11% in DriveX Mobility

1 Dec 2024 , 02:29 AM

TVS Motor Company plans to buy an additional 39.11% stake in DriveX Mobility Pvt Ltd for ₹97.78 crore, raising its total ownership to 87.38%.
The company is buying 7,914 equity shares at ₹10 each from existing shareholders. After the deal is consummated, DriveX will become a subsidiary of TVS Motor.

DriveX operates in trading and distribution of two-wheelers and the company generated a revenue of ₹33.99 crores in FY 2023-24, though it also incurred a tax loss of ₹30.98 crores. Net worth of the company at the end of the last financial year stood at ₹43.30 crore.

TVS expects that this acquisition will enhance the efficiency in its trading operation of two-wheelers and strengthen the market presence of the company. The transaction is independent and not a related party deal, hence transparent. Sudarshan Venu, a member of the TVS promoter group, holds a small 0.59% stake in DriveX.

In Q2 FY24, TVS Motor clocked an all-time operating revenue of ₹9,228 crore, up 13% year on year. Profit after tax, including the same quarter of ₹663 crore for the company, spiked 23.4% year-on-year.