Auto

Mahindra and Mahindra fully acquires Meru Cabs, raises its stake to 100 per cent

Mahindra and Mahindra has fully acquired the app-based cab service Meru after it finalised a deal to elevate its stake to 100 per cent on Friday. Mahindra earlier used to maintain 43.20 per cent stake within the company.

After finalising the deal, Mahindra and Mahindra mentioned this transfer is in continuation of its strategic intent to develop its presence within the shared mobility house. To purchase out the stakes, Mahindra and Mahindra will spend round 98 crore.

The Indian automotive producer will purchase 44.14 per cent shares from personal fairness investor True North and others for an quantity not exceeding 76.03 crore. Besides this, it can even have to purchase 12.66 per cent shares from Neeraj Gupta and Farhat Gupta, the husband-wife duo who based the cab service, for an quantity not exceeding 21.63 crore.

Anish Shah, Managing Director and Chief Executive Officer (CEO) at Mahindra Group, mentioned, “At the outset, I would like to thank Neeraj Gupta and the team at Meru for building a pioneering brand in the shared mobility space in India. Our association with Meru is built on our compelling strategy to scale our shared mobility businesses.”

Pravin Shah would be the new CEO of Meru and its subsidiary firms from at the moment, whereas Neeraj Gupta, founder CEO of Meru and its subsidiary firms, have stepped down to proceed as an abnormal worker now. Pravin Shah was earlier the president of Mahindra and Mahindra Automotive until March 2017.

Founded in 2006, Meru Cabs has a large fleet of automobiles starting from hatchbacks, economic system and luxurious sedans to premium SUVs and buses, together with electrical automobiles (EVs). The cab operator caters to each intra- and inter-city journey, in addition to airport and automotive rental companies. Meru operates the second largest fleet of EVs within the nation with over 350 electrical automobiles operational throughout Mumbai and Delhi.

Back to top button