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.