You are here: Home » Companies » News
Business Standard

M&M buys 36.6% in Meru for Rs 44.71 cr, to appoint majority of directors

M&M said it "has invested an amount of Rs 44.71 crore (in cash consideration) for the acquisition of 36.63 per cent of the equity share capital of Meru"

M&M | Meru Cabs | Mahindra & Mahindra

Press Trust of India  |  New Delhi 

Homegrown utility vehicles major (M&M) on Thursday said it has completed acquisition of 36.63 per cent stake in Meru Travel Solutions in the first tranche as part of its Rs 201.5-crore deal to acquire 55 per cent shareholding in the radio taxi operator.

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

"...the company has today acquired 36.63 per cent 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," said in a regulatory filing.

said it "has invested an amount of Rs 44.71 crore (in cash consideration) for the acquisition of 36.63 per cent of the equity share capital of Meru".

Consequently, Meru has become a subsidiary of the company with effect from December, 5 2019.

Also subsidiary 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 March 31, 2019, Meru had consolidated revenue of Rs 156.6 crore, while Meru Mobility Tech had a standalone revenue of 114.6 crore.

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

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

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, December 05 2019. 19:30 IST