Automobile manufacturer Force Motors Ltd has executed a Memorandum of Understanding (MoU) to acquire 100% shares of Veera Tanneries Private Ltd (VTPL) for a total consideration of ₹175 crore, subject to deduction of applicable taxes. According to latest reports, the MoU was executed on February 6, 2026, outlining the key terms of this potential transaction. The acquisition will proceed after undertaking the requisite due diligence and adhering to mutually agreed terms and conditions, which will form the basis of the definitive agreements. This follows the company's previous announcement on February 4, 2026, regarding the acquisition, with the process remaining subject to the completion of all regulatory approvals.
Shares of Force Motors Ltd ended at ₹21,418.85, up by ₹344.35, or 1.63%, on the BSE following the acquisition announcement. As reported by CNBC TV18, this positive market reaction reflects investor confidence in the strategic expansion move into the tanneries sector.
Force Motors reported exceptional financial results for the third quarter, with consolidated net profit reaching ₹406.1 crore, representing a remarkable 252% year-on-year jump from the previous year. According to CNBC TV18, revenue from operations rose 12.6% year-on-year to ₹2,128 crore from ₹1,889.5 crore, reflecting improved demand and higher realisations. The company's EBITDA climbed 61.4% to ₹373.8 crore from ₹231.6 crore a year earlier, with EBITDA margin expanding sharply to 17.5% in the quarter, up from 12.3% in the corresponding period last year.
The sharp rise in net profit was significantly supported by a one-time gain of ₹211 crore during the quarter, as reported by CNBC TV18. This exceptional income, combined with higher revenues and margin expansion, contributed to the strong overall profitability performance for the third quarter.
The total consideration for the acquisition is ₹175,00,00,000 (Rupees One Hundred and Seventy Five Crores), with the final consideration subject to standard deductions for applicable taxes. As per the latest reports, the completion of the acquisition is contingent upon several factors, including the completion of a satisfactory due diligence review and the agreement on definitive terms and conditions. The final consideration may also be adjusted based on the findings of the due diligence process, with both parties now working towards finalizing the necessary agreements to complete the transaction.
