Mahindra & Mahindra on January 6 said Zoomcar Inc, the US-incorporated holding parent of car rental firm Zoomcar India, is no longer its associate company. A merger process was brought into effect by Zoomcar Inc to separate itself from M&M, as per a regulatory filing.
Zoomcar Inc entered into a merger with the Innovative International Acquisition Corp (IOAC), a blank check company on January 5, M&M said. Following the merger, IOAC was renamed as Zoomcar Holdings.
"Consequent to the merger, Zoomcar Inc has ceased to be an associate of the company," M&M informed the exchanges.
M&M currently holds 4.6 lakh compulsory convertible preference shares (CCPS) of Zoomcar India, accounting for 9.83 percent of its share capital.
As a CCPS holder of Zoomcar India, M&M said it will receive 11.7 lakh shares, aggregating "1.04 percent" of the share capital of Zoomcar Holdings.
Zoomcar Inc's consolidated revenue from operations stood at Rs 70.79 crore in fiscal year ending March 31, 2023, the filing stated.
The consolidated net worth at the end of FY23 was in the negative, at minus Rs 426.93 crore, added M&M, which led the clutch of investors in February 2018 who pumped in $40 million in Zoomcar.
M&M also said that its subsidiary, Mahindra Overseas Investment Company, which held shares in Zoomcar before its cessation as an associate company, will be eligible to receive 2.5 lakh shares, aggregating to 0.22 percent of the share capital of Zoomcar Holdings.
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