Mahindra & Mahindra (M&M) has completed 58.96 percent stake in heavy vehicle maker SML ISUZU LTD (SML). Mahindra bought this part from Sumitomo Corporation and Isuju Motors of Japan. Stock markets have been informed about this. It was announced in April this year that M&M is buying SML controlling steak. There is an agreement for this.
It was said that the share purchase will be done at the rate of Rs 650 per share and the deal will be Rs 555 crore. In addition, M&M will also bring an open offer for the SML’s stake up to 26% or purchase of 37,62,628 shares under the SEBI acquisition rules.
On August 1, M & M told the stock markets that as part of the transaction M&M has completed the purchase of 43.96% stake of SML promoter Sumitomo Corporation or 63,62,306 shares. Also, the purchase of 15% stake or 21,70,747 shares of SML’s public shareholder Isuzu Motors Limited has also been completed. In this way, the entire purchase, including both transactions, stood at 85,33,053 shares, which is equal to 58.96% shareholding of SML.
What is Sml New name of
Now M & M has become a promoter of SML and SML has become a listed subsidiary. The name of SML Isuzu has been changed to SML Mahindra Limited after this acquisition. On this, the company is yet to take approval from shareholders, company registrars and other regulatory bodies. Apart from this, there has also been a change in the board of SML. President (Aerospace and Defense, Truck, Bus and Construction Equipment) Vinod Sahai has been appointed SML’s Executive Chairman from August 3 in the Mahindra Group. Dr. Venkat Srinivas has held the responsibility of Executive Director and CEO since 1 August.
What is the benefit of M & M from this purchase
The purchase of SML will double the market share of M & M to 6%. It is planned to increase it to 10-12% by FY 2031 and more than 20% by FY 2036. SML Isuju has a good position in the market in the area of ILCV buses. Its market share is about 16%. The company registered an operational revenue of Rs 2,196 crore in FY 2024 and an Ebitda of Rs 179 crore.
On Friday, August 1, Mahindra & Mahindra shares closed over 1 percent to close at Rs 3160.20. At the same time, SML Isuzu shares climbed 5 percent and closed in upper circuit at Rs 3469.40.
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