TVS Motor to Sell Stake in Rapido to Accel and MIH Investments

In a regulatory filing, TVS Motor Company Limited disclosed that it has entered into separate share purchase agreements with Accel India VIII (Mauritius) Limited and MIH Investments One B.V. The agreements involve the sale of the company’s holdings in Roppen Transportation Services Private Limited (Rapido).

Under the agreement, TVS Motor will sell 11,997 Series D Compulsory Convertible Preference Shares (CCPS) to Accel India VIII (Mauritius) Limited for Rs 143.96 crore and 10 equity shares along with 11,988 Series D CCPS to MIH Investments One B.V. for Rs 143.97 crore. The completion of these transactions is subject to necessary regulatory approvals.

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TVS Motor stated that the sale is part of its effort to monetize its investment in Rapido. The company had earlier invested in the ride-hailing start-up as part of its broader engagement with new mobility and technology-based transport services.

By divesting its stake, TVS Motor Company aims to reallocate its capital and strengthen its focus on core business areas that includes two-wheelers and electric mobility.

TVS Motor confirmed that the purchasers are not related to its promoter group and that the deal does not qualify as a related-party transaction. No special rights, board nominations, or other related arrangements were reported as part of the agreement.

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The share sale agreements will become effective once the required approvals are obtained by both purchasing entities. TVS Motor has stated that there are no other material disclosures or potential conflicts of interest arising from the transaction.