Eicher Motors Limited has announced that its material unlisted subsidiary, VE Commercial Vehicles Limited (VECV), will increase its stake in VE Connected Solutions Private Limited (VECS) from 51% to 74%. The acquisition, valued at INR 11.01 million, represents a strategic move to bolster VECV’s capabilities in the automotive connected solutions space. The transaction is expected to be finalized on or before July 31, 2026.
Strategic Stake Acquisition
On May 18, 2026, the Board of Directors of VE Commercial Vehicles Limited (VECV) approved the acquisition of an additional 23% shareholding in VE Connected Solutions Private Limited (VECS). By purchasing 1,15,000 shares at a price of INR 95.80 per share, VECV will increase its total ownership from 51% to 74%, while the stake of joint venture partner iTriangle will reduce to 26%.
Rationale and Future Impact
The acquisition is driven by the desire to expand VECS’s role in the future of automotive technology. VECS, which commenced operations in August 2024, specializes in software design, telematics, connected vehicles, and compliance-related services. This move allows VECV to more effectively develop and implement cost-effective, innovative products for its customers.
Financial Performance and Timeline
VECS has demonstrated significant growth, reporting a turnover of INR 911 million for the financial year ended March 31, 2026, compared to INR 330.4 million in the previous fiscal year. The transaction is being conducted at arm’s length and is scheduled for completion by July 31, 2026.
Source: BSE
