Castrol said that the said acquisition will take place in two tranches and will be completed by January 2023.
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Mobility fuel manufacturer Castrol India Ltd. announced on Friday that it will acquire 7.09 percent stake in TVS Mobility Group's ki Mobility in two tranches.
The first tranche will see Castrol subscribe to 4.8 percent of the total share capital for Rs 325 crore in December 2022, while the second tranche will see Castrol subscribing to an additional 2.4 percent of Ki Mobility's total shares for Rs 162.5 crore in January 2023.
Total consideration of both the tranches comes up to Rs 487 crore.
The strategic investment will expand Castrol India’s presence in the aftersales service & maintenance segment.
Both Castrol and Ki Mobility will explore business and technology collaborations under this partnership, to bring transformative disruption within the automotive service sector and focus on EV readiness.
Ki Mobility was incorporated in September 2018 and is one of the leading players in the automotive service, maintenance and repair sector in India. The TVS Mobility Group-unit aims to provide an end-to-end vehicle life cycle management and connected vehicle propositions for consumers on its tech platform.
Over the last three financial years, Ki Mobilty has had revenue of Rs 545 crore, Rs 819 crore and Rs 1,207 crore respectively.
Shares of Castrol India is trading 1.4 percent higher at Rs 132.05.
First Published: IST