TVS Motor Company Ltd, a leading two- and three-wheeler manufacturer and part of the TVS Group, has increased its stake in its subsidiary DriveX Mobility Pvt Ltd to 92.41% from 87.38% for a total consideration of about ₹10 crore.
The proceeds of the issue will be primarily utilised towards repayment of debt obligations and for operational expenses of the subsidiary.
Investment details
TVS Motor has been acquiring shares of DriveX from time to time, and the latest tranche involving around 0.20% has resulted in a cumulative increase of over 5% in its shareholding.
The transaction value for this tranche stood at ₹9,99,60,460.68. The transaction was completed on April 15.
Subsidiary profile
Founded in 2020 by India’s first Formula 1 driver Narain Karthikeyan along with Christopher Anand Sargunam, DriveX focuses on bridging gaps in the pre-owned two-wheeler market with an emphasis on accessibility and sustainability.
The Coimbatore-based company is engaged in leasing motorcycles and scooters, as well as the sale, trade and distribution of pre-owned two-wheelers.
Shareholding structure
Sudarshan Venu, part of the promoter group of TVS Motor, holds a 0.38% stake in DriveX.
The increase in stake reinforces TVS Motor’s strategic interest in the pre-owned mobility segment, which is emerging as a key adjunct to new vehicle sales.
Outlook
The move is aligned with TVS Motor’s broader strategy to expand its presence across the mobility ecosystem, including ownership, leasing and resale platforms.
Strengthening its stake in DriveX is expected to support the company’s efforts to build a more integrated and scalable mobility solutions platform.
Initial buyout
TVS Motor announced its initial acquisition of 48% stake in DriveX in August 2022 for ₹85.41 crore. In November 2024, it acquired additionally 39% stake for ₹97.78 crore.