Mahindra and Mahindra in December acquired 36.6% of the share capital in Meru upon completion of its first tranche of investment, and made the cab company a subsidiary of Mahindra.
The company had signed a share subscription agreement in August to subscribe up to 55% of the equity share capital in tranches for ₹2 billion (US$28 million).
The investment has granted Mahindra the right to appoint the majority of directors on Meru’s board, effectively controlling the board’s composition. “With the first tranche of investment, the shareholding of True North in Meru has been diluted,” said a lawyer at Pioneer Legal who worked on the deal. Pioneer represented the company and existing investor True North.
In addition, subsidiaries Meru Mobility Tech, V-Link Automotive Services and V-Link Fleet Solutions have become a part of Mahindra. Meru’s revenues in the financial year 2019 were ₹1.5 billion.
Pioneer Legal was involved in drafting, reviewing, negotiating and revising the transaction documents. The firm also assisted in structuring and closing related aspects of the deal. The firm was represented by partners Satish Kishanchandani and Narendra Dingankar, counsel Shoubhik Dasgupta and associate Eishan Agnihotri.