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TVS Motor Acquires Majority Stake in DriveX with 87.38% Holding

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Synopsis:

TVS Motor Company has completed the acquisition of a 39.11% stake in DriveX for ₹97.78 crore. This increases its holding to 87.38%, boosting operational efficiencies and market strength. DriveX reported a turnover of ₹33.99 crore in FY24.

TVS Motor Company news today

TVS Motor Company has successfully acquired a 39.11% stake in DriveX Mobility Private Ltd for ₹97.78 crore. This acquisition brings TVS Motor’s total holding in DriveX to 87.38%, officially making DriveX a subsidiary. The deal involved purchasing 7,914 equity shares with a face value of ₹10 each from existing shareholders.

Also read: Adani Defence Acquires 85.8% Stake in Air Works for ₹400 Crore

TVS MOTOR COMPANY LTD

Trade

2424.536.19 (1.51 %)

Updated - 24 December 2024
2433.65day high
DAY HIGH
2372.55day low
DAY LOW
325896
VOLUME (BSE)

Key Takeaways

  • Acquisition Amount: ₹97.78 crore for a 39.11% stake.

  • Ownership Post-Acquisition: 87.38% in DriveX.

  • DriveX Turnover (FY24): ₹33.99 crore.

  • DriveX Loss (FY24): ₹30.98 crore after tax.

  • TVS Motor Revenue (Q2 FY25): ₹9,228 crore, marking a 13% YoY growth.

Also read: BEL Secures Orders Worth ₹973 Crore, Achieves 40% of FY25 Target

DriveX’s Financial Performance

DriveX, engaged in two-wheeler trading and distribution, reported a turnover of ₹33.99 crore in FY 2023-24. However, the company incurred a loss after tax of ₹30.98 crore, with a net worth of ₹43.30 crore at the close of the financial year.

The acquisition is expected to improve operational efficiencies for TVS Motor within the two-wheeler trading segment and strengthen its market presence.

Details

Figures

Acquisition Stake

39.11%

Total Holding

87.38%

Acquisition Amount

₹97.78 crore

DriveX Turnover (FY24)

₹33.99 crore

DriveX Loss After Tax

₹30.98 crore

TVS Motor’s Q2 FY25 Financial Highlights

TVS Motor Company reported its highest-ever profit after tax (PAT) of ₹663 crore in Q2 FY25, reflecting a 23.4% increase compared to Q2 FY24. Despite achieving record operating revenue of ₹9,228 crore, the results fell short of CNBC-TV18’s estimated revenue and profit expectations.

The TVS Motor Company share price closed at ₹2,388.15 on the BSE, down by 0.15% following the financial update.

With this acquisition, TVS Motor’s strengthened ownership in DriveX positions it to optimise operational efficiencies and reinforce its foothold in the competitive two-wheeler market. The company’s robust Q2 FY25 results further demonstrate its resilience and growth potential.

Also read: US FDA Restricts Imports of Viatris Drugs Manufactured at Indian Facility

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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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