Mahindra & Mahindra, the homegrown multinational car manufacturing corporation, acquired a 55% stake in Meru Travel Solutions Ltd, the parent organization of the well known Meru Cabs network for a cash consideration of up to Rs 201.5 crore, to be a part of the growing shared mobility space market.
The firm signed a share subscription and shareholder agreement for subscribing to up to 55% equity share capital in Meru and announced the first portion of the investment to be made in October 2019 to the BSE (Bombay stock exchange) on Saturday.
The Agreement provides M&M with the right to appoint the majority Board of the Directors on the Board of Meru post the initial payment of investment, according to a regulatory filing by the company.
On gaining this right, Meru will become the subsidiary of the homegrown organization following which, the subsidiaries of Meru company will become the subordinate of M&M which includes Meru Mobility Tech Private Ltd, V-Link Automotive Services Private Ltd, and V-Link Fleet Solutions PrivateLtd.
The consolidated revenues of the Mumbai based company, Meru Travel solutions Ltd, have fractioned out to Rs. 156 crore as against Rs. 277.2 crore generated income in the FY’17.