Truck financing company Shriram Transport Finance Company (STFC) on Wednesday said it has decided to sell the majority stake in its subsidiary, Shriram Automall India Limited (SAMIL), to MXC Solutions India (owners of cartrade.com and carwale.com).
Truck financing company Shriram Transport Finance Company (STFC) on Wednesday said it has decided to sell the majority stake in its subsidiary, Shriram Automall India Limited (SAMIL), to MXC Solutions India (owners of cartrade.com and carwale.com). In a communication to the stock exchanges, STFC said all the three parties entered into a share purchase agreement with MXC Solutions, wherein STFC will sell 1,66,30,435 equity shares of Rs 10 each at a price of Rs 94.03 a share to MXC Solutions for a consideration of Rs 156.37 crore. Consequently, MXC will acquire the majority stake of SAMIL. The deal is expected to be concluded within 90 days (by April 23, 2017). Shriram Automall reported revenue of Rs 84 crore for 2016-17 and net worth of Rs 60 crore. It has been making profits since inception. SAMIL is a pioneer in serving the most organised bidding platforms to facilitate the trade of used vehicles and equipment. It serves an exhaustive range of pre-owned commercial vehicles, construction equipment, tractors, buses, cars and SUVs, 3-wheelers and 2-wheelers.
With over 75 malls across the country, SAMIL also runs platforms for physical bidding, online bidding, one-stop classified kiosk and private treaty. It has also framed its operations with an ideal mix of allied services, namely new look refurbishment (repair of pre-owned vehicles & equipment), parking (around 75 strategic parking locations across India), valuation (valuation of assets by experienced professionals), easy finance through STFC among other services. The company through its 150 bidding locations across the country has more than 300,000 buyers. MXC Solutions operates online auctions platforms, including cartrade.com and carwale.com, to buy and sell new and used vehicles. Its platforms enable users to carry out vehicle evaluations through their mobile phone, check used car buying index, and upload photos and evaluation reports online and get reports on customers whose insurance is due for renewal/upgrade.