TVS Motor Expands Stake in DriveX to 87.38%

26 Dec 2024 , 01:00 PM

TVS Motor Company has made a leap by acquiring an additional 39.11% stake in DriveX Mobility Private Ltd for ₹97.78 crore. This pushes TVS’s ownership in DriveX to 87.38%, officially making it part of the TVS family.

To seal the deal, TVS bought 7,914 shares from existing owners at ₹10 per share. The transaction was carried out transparently and isn’t linked to any related parties.

DriveX, a two-wheeler trading and distribution company, has had a challenging financial year. In 2023-24, it earned ₹33.99 crore in revenue but faced a tax loss of ₹30.98 crore. The company’s overall worth stands at ₹43.30 crore based on the latest financial data.

TVS sees potential in DriveX and believes this acquisition will improve its operational efficiency and market presence. Interestingly, Sudarshan Venu, part of TVS’s promoter group, holds a small 0.59% stake in DriveX.

On December 24, 2024, shares of TVS Motor Company closed at ₹2424 which is a 1.52% gain than the previous close. The stock has gained a total of 21% in the last one year, and 0.41% in the last 6 months.

On a broader scale, TVS recently shared its Q2 FY25 results, showcasing a revenue of ₹9,228 crore—up 13% year-on-year. It also recorded its highest-ever profit of ₹663 crore, a 23.4% increase from the same period last year. While the performance was strong, it slightly missed market expectations.