Mahindra Holdings Ltd, a wholly owned subsidiary of Mahindra & Mahindra, on Thursday said that it has sold its entire stake in Mahindra First Choice Services (MFCS) for ₹21.5 crore, as well as its entire stake in MFCS’ subsidiary, Auto Digitech Private Limited, for ₹13.5 crore, to TVS Automobile Solutions Private Limited.

MFCS is involved in the business of servicing multi-brand car and two-wheelers.

Mahindra Holdings had on November 26, 2020, agreed to sell its entire stake aggregating 100 per cent of the paid-up equity share capital in MFCS, as well as its entire stake aggregating 100 per cent of optionally convertible redeemable preference shares in ADPL to Chennai-based TVS Automobile Solutions Private Ltd.

“MHL has today completed the above transaction. Following the sale, MHL’s shareholding in MFCS and ADPL has become ‘Nil’,” M&M said in a regulatory filing on Thursday. Consequently, MFCS and ADPL have ceased to be subsidiaries of MHL and of the company with effect from 25 February, 2021, it said.

Following the sale of shares of MFCS, TASL will hold 100 per cent of the paid-up equity share capital of MFCS.

TVSASL, a ₹1,000-crore-plus company, is a leading company in the automotive after-market segment. MFCS reported a revenue of ₹107 crore in FY20.

“The acquisition of MFCSL is expected to strengthen TVSASL as a much stronger pan-India player. Though both have networks across the country, TVSASL has a very strong network in the South, while MFCSL has a well-established network in the West, North and in some parts of the East. Also, MFCSL’s process and digital capabilities will strengthen TVSASL’s overall expertise,” G Srinivasa Raghavan, Managing Director, TVSASL, had said in November, while addressing the media in a virtual meeting.