M&M Inks ₹555 Crore Deal to Acquire 58.96% Stake in SML Isuzu

Mahindra & Mahindra (M&M) announced on Sunday that it has signed an agreement to acquire a 58.96% stake in SML Isuzu Ltd. (SML) for ₹555 crore. The acquisition will be done at a price of ₹650 per share. As part of the deal, M&M will purchase the 43.96% stake held by Sumitomo Corporation and a 15% stake held by Isuzu Motors Ltd. In line with SEBI takeover regulations, M&M will also make an open offer to acquire up to 26% of SML’s public shareholding.

As of 9:15 AM, April 28, 2025, Mahindra and Mahindra share price was trading at ₹2,918.80, a 1.91% increase, with the stock up 3.02% over the past six months and 38.94% over the past year.

At the same time, SML Isuzu share price is trading at ₹1,596.10, a 10% down.

Approvals and Advisors

The transaction is subject to regulatory approvals, including clearance from the Competition Commission of India. Completion is expected within 2025.

Kotak Investment Banking is acting as the financial advisor for the transaction, and Khaitan & Co is providing legal advisory services.

Financials of SML Isuzu

SML Isuzu reported operating revenue of ₹2,196 crore and EBITDA of ₹179 crore for the financial year 2024. The company has a presence in the intermediate light commercial vehicle (ILCV) buses segment with a market share of approximately 16%.

SML Isuzu was incorporated in 1983 and is listed on the stock exchanges in India.

Read More: Mahindra Group Companies to Raise Funds Worth ₹4,500 Crore via Rights Issues

Market Impact

According to news reports, following the acquisition, Mahindra’s market share in the trucks and buses segment is expected to increase from 3% to 6%. The company has stated a target to raise its share further to around 10-12% by the financial year 2031.

Currently, Mahindra holds a 52% market share in the light commercial vehicle (LCV) segment for vehicles under 3.5 tonnes.

Conclusion

Mahindra & Mahindra’s acquisition of SML Isuzu is part of its expansion in the commercial vehicle segment. Further steps, including the open offer, are planned as per regulatory requirements.

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