Bangalore/Mumbai: Automobile major Mahindra and Mahindra (M&M) on Wednesday announced it has taken 55.2 per cent stake in electric car-maker REVA through a combination of equity purchase and fresh capital infusion of Rs 45 crore ($ 10 million).
Post acquisition, the Bangalore-based REVA will be renamed Mahindra REVA, spokespersons of both the companies told reporters here.
M&M's automotive sector president Pawan Goenka will be nominated as the new entity's chairman.
Reva promoter Chetan Maini will stay on with the company as its technology and strategy chief. He will also be a member of the board.
"The new board includes five nominees from Mahindra and Mahindra, two from the Maini family, and one from AEV LLC, California (co-founders of REVA," said M&M in a regulatory filing.
REVA currently sells its electric car in 24 countries and has sold about 3,500 vehicles globally till date.
M&M has been working on developing vehicles using greener fuels and has an electric variant of its three-wheeler commercial vehicle "Bijlee". It is also working on rolling out the electric version of its mini-truck Maxximo.
"This is a key strategic acquisition for Mahindra. With Mahindra's vehicle engineering expertise, global distribution network, sourcing clout and financial support, REVA's vehicles have the potential to significantly gain in market penetration," said Goenka.
The M&M scrip was up 1.91 per cent at Rs 526, around noon. It earlier rose to an intra-day high of Rs 538.55.
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