M&M elects 36.63% in Meru in the first tranche, has the right to appoint a majority of directors

New Delhi, December 5 () Mahindra&Mahindra (M&M) home-grown utility vehicles said Thursday they completed the acquisition of 36.63 percent stake in Meru Travel Solutions in the first tranche as part of their Rs 201.5 million deal of rupees to acquire 55 per cent share in the radio taxi operator.

In September, M&M had announced the signing of a share subscription and a shareholder agreement to subscribe up to 55 percent of the share capital of Meru Travel Solutions Pvt Ltd in tranches.

... the company today acquired 36.63 percent of Meru's share capital in the first tranche of investment, and also the right to appoint the majority of directors in Meru's board of directors, M&M said in a regulatory document .

M&M said it has invested an amount of Rs 44.71 crore (in cash) for the acquisition of 36.63 percent of Meru's share capital.

Consequently, Meru has become a subsidiary of the company as of December 5, 2019.

Meru’s subsidiaries - Meru Mobility Tech Pvt Ltd, V-Link Automotive Services Pvt Ltd, V-Link Fleet Solutions Pvt Ltd - have also become M&M subsidiaries, he added.

For the year ended March 31, 2019, Meru had consolidated revenues of Rs 156.6 million rupees, while Meru Mobility Tech had an independent income of 114.6 million rupees.

The independent income of V-Link Automotive was Rs 3.3 million rupees and V-Link Fleet was Rs 46.6 million rupees. Meru, which was incorporated in December 2006, recorded consolidated revenues of Rs 156.6 million in 2018-19, Rs 189.9 million in 2017-18 and Rs 277.2 million in 2016-17. RKL RKL MR MR

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