TVS Motor to acquire another 39.11% stake in DriveX

TVS Motor Company has agreed to acquire another 39.11% stake from the existing shareholders of DriveX Mobility Pvt. Ltd., for a cash consideration of ₹97.78 crore.

With this acquisition, TVSM’s stake will increase to 87.38% and hence the Narain Karthikeyan-backed firm will become a subsidiary, the leading two- and three-wheeler manufacturer said in a statement.

TVSM currently holds 9,766 shares, representing 48.27% of DriveX’s issued, subscribed and paid-up share capital. TVSM Managing Director Sudarshan Venu, one of the promoter group members, owns 0.59% of the target company.

DriveX, a company primarily engaged in two-wheeler trading and distribution, posted a turnover of ₹34 crore in FY24, a loss after tax of ₹31 crore and a net worth of ₹43 crore. The transaction is expected to be completed within 30 days.