TVS buys 14.8% stake in electric two-wheeler firm Ultraviolette for Rs 5 cr

Ultraviolette designs and develops motorcycles and battery packs in order to give them a modern premium look

TVS Motor has acquired a minority stake in Bengaluru-based electric two-wheeler and energy infrastructure start-up Ultraviolette Automotive.

The company will acquire 14.78 per cent stake, or 6,750 equity shares of Rs 10 each for Rs 7,409 per share. The total cost of acquisition would be around Rs 5 crore, according to a company filing with the exchanges.

Founded on December 18, 2015, Ultraviolette aims to build an ecosystem that addresses the transportation needs of an urban environment. According to reports, the firm deals with designing and developing motorcycles and battery packs in order to give them a modern premium look.

It has reported a total revenue of Rs 3.21 lakh in 2016-17, shooting up from Rs 31,570 in 2015-16.

The investment comes in line with the automaker's efforts to bring in clean energy technology to substitute traditional fuels amid growing concerns over depleting environmental health. In October 2016, Hero MotoCorp had acquired 26-30 per cent stake in Ather Energy, an electric two-wheeler firm, for Rs 180 crore.