Mahindra Holdings Limited, a subsidiary owned by Mahindra & Mahindra declared that they have sold its entire shares of the Mahindra First Choice Services (MFCS) for an amount of 21.5 crore Rupees. The company had also sold its shares of the MFCS’ subsidiary- Auto Digitech Private Limited, for 13.5 crore Rupees to TVS Automobile Solutions Private Limited.
MFCS is involved in the business of servicing and reselling pre-owned multi-brand car and two-wheelers. Mahindra & Mahindra in a regulatory filing on Thursday stated- “MHL has today completed the above transaction. Following the sale, MHL’s shareholding in MFCS and ADPL has become ‘Nil’.”
TVS ASL was made in 2011 under TVS & Sons. It is currently a 1,000+ crore rupee company and a pioneer organization in the automotive aftermarket category.
After the sale of shares of Mahindra First Choice, TVS will hold 100% of the paid-up equity share capital of MFCS.
G Srinivasa Raghavan, Managing Director of TVS-ASL, addressed the media in a virtual meeting held in November saying, “The acquisition of MFCSL is expected to strengthen TVS-ASL as a much stronger pan-India player. Though both have networks across the country, TVS-ASL has a very strong network in the South, while MFCSL has a well-established network in the West, North and in some parts of the East. Also, MFCSL’s process and digital capabilities will strengthen TVS-ASL’s overall expertise.”