The acquisition will be completed through the purchase of 7,914 equity shares, with a face value of ₹10 each, from existing shareholders. Upon completion of the transaction, DriveX will become a subsidiary of TVS Motor.
DriveX, a company primarily engaged in the trading and distribution of two-wheelers, reported a turnover of ₹33.99 crore in FY 2023-24 but incurred a loss after tax of ₹30.98 crore. Its net worth stood at ₹43.30 crore as of the last financial year.
Also Read: TVS Motor shares race to 52-week high as new Jupiter launch leads to target price upgrade
The transaction, valued at an undisclosed amount, is expected to enhance TVS Motor’s operational efficiencies in the two-wheeler trading segment. With this acquisition, TVS aims to strengthen its position in the market and better serve its customers.
The acquisition is not considered a related party transaction, and the company confirmed that it is being conducted at arm’s length. Sudarshan Venu, a member of TVS’s promoter group, holds a minor stake of 0.59% in DriveX.
TVS Motor Company posted its highest-ever operating revenue of ₹9,228 crore, a growth of 13% for the quarter ended September 2024 as against ₹8,145 crore in the quarter ended September 2023, the firm said in an exchange filing on October 23.
Also Read: TVS Motor outperforms industry growth in festive season but Jefferies cuts target price — Here’s why
However, the two-wheeler maker’s revenue came in lower than the CNBC-TV18 poll expectation of ₹9,465 crore, which would have translated to a year-on-year jump of 16%
The company also saw its highest-ever profit after (PAT) of ₹663 crore in Q2, which also fell short of the CNBC-TV18 poll projection of ₹703 crore. The profit has seen an increase of 23.4% compared to the same quarter in the year-ago period.
Shares of TVS Motor Company Ltd ended at ₹2,435.85, up by ₹18.70, or 0.77% on the BSE.
Also Read: Bajaj Auto says it has caught up with TVS Motor’s IQube
