Mahindra & Mahindra Ltd (M&M) announced that Fifth Gear Ventures Limited (FGVL) has ceased to be a subsidiary of the company following the implementation of a merger scheme sanctioned by the Mumbai Bench of the National Company Law Tribunal (NCLT). The Composite Scheme of Amalgamation and Arrangement involved the merger of FGVL, a wholly owned subsidiary of Mahindra First Choice Wheels Limited (MFCWL), into MFCWL itself.
The NCLT approved the scheme on February 11, 2025, and the certified order was received on February 25, 2025. The scheme officially became effective on March 15, 2025, when the certified order was electronically filed with the Registrar of Companies, Maharashtra, Mumbai. As a result, FGVL has ceased to be a subsidiary of both MFCWL and Mahindra Holdings Limited (MHL), which is a wholly owned subsidiary of Mahindra & Mahindra Ltd.
According to Mahindra & Mahindra’s exchange filing, the merger aims to consolidate business operations, streamline the corporate structure, and enhance operational efficiency by reducing redundancies and optimizing resource utilization.
Fifth Gear Ventures was engaged in operating an automotive web platform for car and bike retail sales, while Mahindra First Choice Wheels focuses on trading in used vehicles through its franchise network and digital platforms. With the merger completed, Mahindra First Choice Wheels will now take full control of these operations.
M&M confirmed that the merger falls under the definition of a related party transaction under SEBI regulations but was conducted at arm’s length. The transaction does not result in any changes to Mahindra & Mahindra’s shareholding pattern.
