M&M Share Price in Focus After Deal to Acquire 58.96% Stake in SML Isuzu for ₹555 Crore

Mahindra & Mahindra Ltd (M&M) announced on Saturday that it has signed an agreement to buy a 58.96% stake in SML Isuzu Ltd. The deal values each share at ₹650, with a total investment of ₹555 crore.

Under the agreement, M&M will purchase the entire 43.96% stake held by SML Isuzu’s promoter, Sumitomo Corporation, and an additional 15% stake from another shareholder, Isuzu Motors Ltd. Following SEBI Takeover Regulations, M&M will also make a mandatory open offer to buy up to 26% more from public shareholders.

Strengthening M&M’s Position in Commercial Vehicles

Currently, M&M holds a 3% market share in the commercial vehicles (CV) segment above 3.5 tonnes and 52% in the light commercial vehicles (LCV) segment below 3.5 tonnes. The company said this acquisition will help double its market share in the heavy CV segment to 6%. M&M aims to grow its CV market share to 10-12% by FY31 and cross 20% by FY36.

Over the last few years, M&M’s Trucks and Buses Division has made steady progress, and this move is seen as a big step to strengthen its presence in the commercial vehicles market.

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About Mahindra & Mahindra Ltd

Mahindra & Mahindra Ltd (M&M) is among India’s most diversified automobile companies, with a strong presence across multiple segments including two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, tractors, and earthmoving equipment.

M&M Share Price Movement

As of April 28, 10:08 AM IST, Mahindra & Mahindra share price stood at ₹2,905.00, up by ₹40.80 or 1.42% for the day. The stock opened at ₹2,918.90, touched a high of ₹2,945.00 and a low of ₹2,882.30 during the session. The company has a market capitalisation of ₹3.48 lakh crore, a price-to-earnings (P/E) ratio of 26.25, and a dividend yield of 0.73%. Over the past 52 weeks, the stock has touched a high of ₹3,270.95 and a low of ₹2,001.00.

Since the acquisition news was announced on Saturday, M&M’s share price is expected to stay in focus on Monday as investors react to the development.

Conclusion

Mahindra & Mahindra’s strategic move to acquire a majority stake in SML Isuzu is aimed at significantly strengthening its position in the commercial vehicles segment. With ambitious targets for market share growth by FY31 and FY36, the deal marks a major step forward in M&M’s long-term plans. Investors will closely watch how this acquisition impacts the company’s future performance.

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