Amit Panday
New Delhi: Mahindra and Mahindra Ltd (M&M) plans to amass 100% stake within the ride-hailing agency Meru Cabs, shopping for the remaining 56.8% shares for Rs 97.69 crore from its traders and promoters, the corporate stated in a regulatory submitting late night Friday.
The buyout of 56.8% shares would come with acquisition of 44.14% shares from the non-public fairness investor, True North and different traders for an quantity of Rs 76.03 crore and the remaining 12.66% shares from the founders Neeraj Gupta and Farhat Gupta for Rs 21.63 crore.
“With this arrangement, M&M will enhance its current shareholding in Meru from 43.20% to 100%,” the corporate stated.
With the entire acquisition of the ride-hailing firm, M&M additionally positive factors management of Meru Cabs’ subsidiary firms – Meru Mobility Tech Pvt Ltd, V-Link Automotive Services Pvt Ltd and V-Link Fleet Solutions Pvt Ltd.
Gupta, who’s the entire time director of Meru Cabs and its subsidiary firms – Meru Mobility Tech, V-Link Automotive Services and V-Link Fleet Solutions, will step down from his function efficient instantly.
The time is true for me to pursue new pursuits and hand over Meru within the secure fingers of the Mahindra GroupNeeraj Gupta
Pravin Shah, who had superannuated from M&M in March 2017 because the president – automotive, will change Gupta. He will take over because the chief government officer (CEO) of Meru Cabs and its subsidiary firms with impact from 1 May 2021, the corporate stated in a press release.
Meanwhile, Gupta will proceed as an worker on the M&M-acquired entity till 30 June, 2021.
Earlier in 2019, M&M had agreed to purchase as much as 55% stake in Meru Cabs for an quantity of Rs 103 crore, with an choice of shopping for the remaining 45% stake from the present traders for as much as Rs 98 crore. Founded in 2006, Meru Cabs grew to become a big participant within the airport switch and company worker transportation enterprise in India.
The car producer’s transfer to lift its stake in Meru Cabs underlines its intent to achieve additional floor within the shared mobility house. The firm is already an investor within the self-drive automotive rental platform ZoomCar India Pvt Ltd.
“Our association with Meru is built on our compelling strategy to scale our shared mobility businesses. Pravin has agreed to take this critical responsibility of the business and to develop sustainable and scalable business strategies,” stated Anish Shah, managing director and chief government officer, Mahindra Group.
“The time is right for me to pursue new interests and hand over Meru in the safe hands of the Mahindra Group,” stated Gupta.
