Strategic Move by Mahindra & Mahindra

In a significant development, Mahindra & Mahindra Ltd announced its agreement to acquire a substantial 59% stake in SML Isuzu, a renowned heavy-vehicle manufacturer, at Rs 650 per share. This strategic acquisition involves an investment of Rs 555 crore, marking a pivotal expansion in Mahindra's portfolio.

Details of the Acquisition

The transaction includes the purchase of 44% stake from Sumitomo Corporation, SML's promoter, and an additional 15% stake from Isuzu Motors, a public shareholder of SML. Furthermore, Mahindra & Mahindra is set to launch a mandatory open offer to acquire up to 26% stake from SML's public shareholders, adhering to SEBI regulations.

Future Growth Prospects

This acquisition is expected to double Mahindra's market share to 6%, with ambitious plans to escalate this figure to 10-12% by FY31 and 20% by FY36. This move underscores Mahindra's commitment to strengthening its presence in the heavy-vehicle sector and exploring new growth avenues.