TVS Motor is getting more attention as the company is divesting stake in Rapido for Rs 288 crore

Shares of TVS Motor Company are likely to be in focus on Friday after the carmaker announced the sale of its stake in bike taxi aggregator Rapido for Rs 287.93 crore, marking a strategic exit from the venture it first partnered with in 2022.In an exchange filing on Thursday, the two-wheeler and three-wheeler maker said it has entered into agreements with Accel India VIII (Mauritius) Limited and MIH Investments One BV to divest its stake in Roppen Transportation Services Private Limited, the parent company of Rapido.

TVS Motor said it will sell 11,997 Series D CCPS to Accel India VIII (Mauritius) for Rs 143.96 crore, and 10 shares along with 11,988 Series D CCPS to MIH Investments One BV for Rs 143.97 crore. The total transaction amounts to Rs 287.93 crore, the company announced.

TVS Motor had entered into a strategic partnership with Rapido in 2022 to collaborate on areas of mutual interest in the commercial mobility ecosystem. The Chennai-based automaker was among the many institutional investors that backed the ride-hailing startup as part of its broader push into last-mile and on-demand mobility solutions.

The divestment comes at a time when Rapido’s shareholder mix is ​​shifting. Recently, Swiggy tried to offload shares worth Rs 2,400 crore in the startup, reportedly due to a possible conflict of interest after Rapido’s foray into food delivery. Following Swiggy’s move, Prosus, a common backer of both companies, increased its stake in Rapido.

On Thursday, November 6, shares of TVS Motor Company closed 1.3% lower at Rs 3,445.30 on the BSE.Also read | Ola Electric vs Ather Energy shares: Which EV bet looks best for your portfolio right now?

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