Mahindra Lifespace Invests Rs 10 Crore In USTPL
Mahindra Lifespace Developers Limited has executed Agreements with Urban Stay Technologies Private Limited (USTPL) and the Promoters of USTPL on 9‘" August 2018. whereby, the company will be investing up to Rs. 10 crores in USTPL in two tranches.
| 1 | Name of the target entity, details in brief such as size, turnover etc.; | Urban Stay Technologies Private Limited(USTPL) Total Turnover including other income: Rs. 5.06 cr. as on 31st March 2018 |
| 2 | Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at "arm's length"; | Not Applicable |
| 3 | Industry to which the entity being acquired belongs | Real Estate Technology - USTPL is in the business of providing branded and shared accommodation through its digital platform ('Co-living'). |
| 4 | Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if Its business is outside the main line of business of the listed entity); | The Co-living sector is gaining traction in India. At this stage, the Company intends to explore the business opportunities in the Co-living space. |
| 5 | Brief details of any governmental or regulatory approvals required for the acquisition | Not Applicable. |
| 6 | Indicative time period for completion of the acquisition | Subject to completion of conditions precedent by USTPL as mentioned in the Agreements; first tranche of investment on or before 8th October 2018 and second tranche of investment on or before 9th August 2019. |
| 7 | Nature of consideration - whether cash consideration or share swap and details of the same | Cash consideration. |
| 8 | Cost of acquisition or the price at which the shares are acquired | The Company will invest up to Rs. 10 crore in two tranches. |
| 9 | Percentage of shareholding/control acquired and/or number of shares acquired | Upon investment of first tranche, the Company will acquire overall 14.35% stake in the total paid-up share capital of USTPL, which will go upto 25.10% post the second tranche of the investment |
| 10 | Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief) | USTPL is in the business of providing branded and shared accommodation through its digital platform (‘Co—Iiving‘). USTPL was incorporated on 23ml February 2016 under the Companies Act, 2013 and its Registered Office is at Bengaluru, India. The details of turnover of last 2 financial years of USTPL is as under: Rs in Lakhs Particulars FY 17-18 FY 16-17 Income 470.6 160.7 Other income 35.9 8.3 Total Income 506.5 169 |
