Home >Companies >News >Mahindra picks 36.63% stake in Meru, gets right to appoint majority of directors
Meru has become a subsidiary of Mahindra & Mahindra with effect from 5 December 2019 (Photo: Mint)
Meru has become a subsidiary of Mahindra & Mahindra with effect from 5 December 2019 (Photo: Mint)

Mahindra picks 36.63% stake in Meru, gets right to appoint majority of directors

  • Mahindra said it 'has invested an amount of 44.71 crore for the acquisition of 36.63% of the equity share capital of Meru
  • In Sept Mahindra had announced signing of a share subscription, shareholder agreement for subscribing up to 55% of equity share capital of Meru Travel in tranches

NEW DELHI : Mahindra & Mahindra (M&M), homegrown utility vehicles major, on Thursday said it has completed acquisition of 36.63% stake in Meru Travel Solutions in the first tranche as part of its 201.5-crore deal to acquire 55% shareholding in the radio taxi operator.

In September M&M had announced signing of a share subscription and shareholder agreement for subscribing up to 55% of equity share capital of Meru Travel Solutions Pvt Ltd in tranches.

"...the company has today acquired 36.63% of the equity share capital of Meru in the first tranche of investment, and also the right to appoint majority of the directors on the board of Meru," M&M said in a regulatory filing. M&M said it "has invested an amount of 44.71 crore (in cash consideration) for the acquisition of 36.63% of the equity share capital of Meru".

Consequently, Meru has become a subsidiary of the company with effect from December, 5 2019. Also subsidiary companies of Meru — Meru Mobility Tech Pvt Ltd, V-Link Automotive Services Pvt Ltd, V-Link Fleet Solutions Pvt Ltd — have in turn become subsidiaries of M&M, it added.

For the year ended 31 March 2019, Meru had consolidated revenue of 156.6 crore, while Meru Mobility Tech had a standalone revenue of 114.6 crore.

V-Link Automotive's standalone revenue was 3.3 crore and V-Link Fleet's was 46.6 crore.

Meru, which was incorporated in December 2006, had clocked consolidated revenue of 156.6 crore in 2018-19, 189.9 crore in 2017-18 and 277.2 crore in 2016-17.

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