- 25 Aug 2022
- ICICIdirect Research
TVS Motors acquires substantial equity stake in Drive XTVSMOTOR - 1048 Change: -7.30 (-0.69 %)
News: In a regulatory exchange filing, TVS Motors informed about purchase of 48.27% stake in Nkars Mobility Millennial Solutions Pvt Ltd (NMMSPL, Drive X) for a consideration of Rs 85.4 crore. NMMSPL was founded in April 2020 by India’s first Formula 1 ace racing driver Narain Karthikeyan and possesses a fully integrated model across pre-owned two-wheeler vehicle value chain ranging from procurement, refurbishment and retailing of multi-brand pre-owned two-wheelers.
View: The said acquisition would help the company grow its pre-owned two-wheeler business wherein vehicles are also sold on a subscription based model. NMMSPL is valued at ~Rs 176 crore and was acquired at ~20x price to sales multiple. The company clocked Rs 8.7 crore of revenue in FY22 & ~Rs 50 lakh in FY21 with a major presence in India.