Eicher Motors’ Subsidiary to Increase Stake in Automotive Connected Solutions Unit
VE Commercial Vehicles Limited (VECV), a material subsidiary of Eicher Motors Limited (EML), is increasing its shareholding in VE Connected Solutions Private Limited (VECS). The increase sees VECV's stake rise from 51% to 74%.VECS, which was previously known as Aquila Mobility Solutions Private Limited, is a joint venture between VECV and iTriangle Infotech Private Limited (iTriangle). The joint venture was formed in May 2024 and commenced operations in August 2024.
The proposed acquisition involves iTriangle agreeing to transfer 23% of its existing shareholding in VECS to VECV. Consequently, the shareholding of iTriangle is expected to reduce to 26%. The transaction will be completed at arm's length, and the promoters and promoter group of EML are not interested in the deal.
Transaction Details and Shareholding Pattern
VECS operates in the Automotive Connected Solutions sector, specializing in software design, development, customization, implementation, maintenance, testing, and benchmarking. The company provides a range of connected services related to IoIs, telematics, and connected vehicles, alongside products for electric vehicles, automotive compliance, and driver state monitoring systems.The shareholding pattern of VECS is slated to change significantly following the acquisition.
| Shareholder Name | Pre-Acquisition Shareholding | Post-Acquisition Shareholding |
|---|---|---|
| VECV | 51% | 74% |
| iTriangle | 79% (Calculated) | 26% |
Financial Implications of the Acquisition
VECV is acquiring 1,15,000 shares of VECS, each having a face value of INR 10/-. The purchase price set is INR 95.80 per share, resulting in a total consideration of INR 11.01 Million.The turnover history for VECS highlights its operational scale:
| Financial Year | Turnover |
|---|---|
| 2025-26 | INR 911 Million |
| 2024-25 | INR 330.4 Million |
| 2023-24 | Not Applicable (NA) |
The investment by VECV is anticipated to be completed on or before July 31, 2026.
Strategic Rationale
The move is aimed at strengthening VECV's capabilities in the automotive sector. According to the company, the acquisition will enable VECV to develop and implement cost-effective, innovative products and services, thereby enhancing value for customers.VECS is classified under the Automotive Connected Solutions industry. The acquisition marks an expansion of VECV's internal resources and market presence within the connected mobility solutions space.
EICHERMOT Stock Price Movement
On Monday, Eicher Motors Limited shares slipped by 1.71% to settle at ₹6,913. The stock traded robustly throughout the session, moving on an exchange that saw 316,357 shares exchanged.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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