Last Updated : Saturday, January 18, 2020 17:16:02

M&M acquires 100% stake of NDTV’s carandbike.com for 304.5 mln INR

MUMBAI | RAJKOT – In a regulatory update as submitted to the Indian Stock Exchanges, Mahindra & Mahindra Ltd, auto arm of Indian Diversified Conglomerate – Mahindra & Mahindra Group said of having acquired 100% stake of digital automotive venture Fifth Gear Ventures Ltd for consideration of 304.5 million (~30.45 crore) rupees by way of cash and shares.

The filing as submitted by the company to the Indian Bourses read that, Mahindra First Choice Wheels Limited (“MFCWL”), a board controlled subsidiary of Mahindra Holdings Limited (“MHL”), which is, in turn a wholly owned subsidiary of the Company, has today signed a Share Purchase Agreement for acquiring up to 100% of the paid up equity share capital of Fifth Gear Ventures Limited (“FGVL”), in one or more tranches, for a consideration not exceeding Rs. 30.45 crores (~304.5 million) to be discharged by MFCWL by way of cash and issue of shares of MFCWL, subject to customary closing adjustments.


Upon acquisition of the above stake, FGVL would become a subsidiary of MFCWL and in turn of MHL and of the Company.

Fifth Gear Ventures Limited (“FGVL”), an unlisted public company based in Delhi, is engaged in the business of maintaining and operating the website ‘www.carandbike.com”, an e-commerce market platform that facilitates sale and purchase of new and used vehicles and keeps its users updated with the latest information and reviews from automotive industry.

The details of FGVL are as under :-

  • Nature of Business : Digital Automotive
  • Date of Incorporation : 1st September, 2015
  • Paid up capital: Rs.9,21,850 (92,185 equity shares of par value of Rs. 10 each)
  • Size/ turnover: FY 19 Revenue -Rs.5,53,97,958

MFCWL is acquiring FGVL with the objective of expanding its presence in the digital automotive space and seamlessly integrating the online and offline user experience.

Subject to customary closing adjustments

  • An amount not exceeding Rs. 16.44 Crores will of the same be discharged by cash. Cost of acquisition or the price at which the shares are acquired
  • An amount not exceeding Rs. 14.01 Crores will be discharged through issue of equity shares of MFCWL aggregating approximately 0.75% of MFCWL’s fully diluted share capital

Consideration not exceeding Rs. 30.45 Crores will be discharged by MFCWL (split into cash and issue of shares by MFCWL as mentioned above) subject to customary closing adjustments.


MFCWL will acquire upto 100 % stake in FGVL.

The details of FGVL are as under :-

  • Incorporated on 1st September, 2015
  • Engaged in the business of maintaining and operating the website ‘www.carandbike.com”, an e-commerce market platform that facilitates sale and purchase of new and used vehicles and keeps its users updated with the latest information and reviews from automotive industry.

Revenue

  • FY19 | Rs.5,53,97,958 (~55.4 million ~ 5.54 Crore)
  • FY18 | Rs. 3,66,66,947 (~36.7 million ~ 3.67 Crore)
  • FY17 | Rs. 26,37,487 (~02.64 million ~ 26.4 Lakhs)

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