Leading automotive and industrial lubricants maker Castrol India Ltd. on Wednesday announced the completion of the acquisition of a 7.09 percent stake in ki Mobility Solutions Pvt. Ltd.
Castrol India acquired the stake in automotive services, maintenance, and repairs provider ki Mobility for a total consideration of Rs 487.50 crore by way of subscription to 95,083 compulsorily convertible preference shares and 100 equity shares.
The acquisition was completed on January 10, 2023, according to an exchange filing by Castrol India.
ki Mobility is a part of the TVS Mobility group, one of the large players in the automotive industry in India, and houses all the recent acquisitions of the TVS Mobility group in the Indian automotive aftermarket.
ki Mobility is one of the leading players in the automotive service, maintenance, and repair segment in India.
Castrol said that the strategic investment is aimed at expanding its presence in the after-sales service and maintenance segment.
Last week Sandeep Sangwan, Managing Director of Castrol India told CNBC-TV18 that the company is looking at an opportunity to transition to the electric vehicle (EV) world and to participate with like-minded players in the market.
Both Castrol and ki Mobility will explore business and technology collaborations under this partnership to bring transformative disruption within the currently fragmented automotive service sector and create leadership positions together with a forward focus on EV readiness.
Ki Mobility had a turnover of Rs 1,206.95 crore in the financial year 2022 against Rs 819.28 crore in the previous fiscal.
Shares of Castrol India ended 0.44 percent lower at Rs 125.30 on Wednesday.
