CarTrade, a private equity-backed firm, is set to acquire a majority stake in Shriram Automall (SAMIL), which sells used trucks, buses and other vehicles, from Shriram Transport Finance Corporation (STFC) for Rs 1.56 billion.
An agreement was signed on this between STFC, Shriram Automall India, and MXC Solutions, which operates CarTrade.com and Carwale.com. After the acquisition MXC Solutions will be the majority shareholder.
STFC will sell 16,630,435 equity shares of SAMIL, with a face value of Rs 10 each, at Rs 94.03 per share.
For Mumbai-based CarTrade, an online automobile classifieds platform, this is the third acquisition and will give it a foothold in the truck and bus business.
Backed by investors such as Temasek Holdings, Warburg Pincus, and Tiger Global, CarTrade has cumulatively raised more than $240 million so far.
When the company raised $55 million from Temasek Holdings in February last year, it said it would use the money for acquisitions, according to the VCCircle data.
In 2016-17, SAMIL clocked Rs 830 million as against Rs 580 million a year earlier. It is a wholly-owned subsidiary of STFC and an unlisted company.
MCX is a private company in the business of operating websites including cartrade.com and carwale.com and facilitates online and offline sales.
STFC is one of the two major NBFCs of the Shriram Group.
Source: Business-Standard