M&M share price in focus on agreement to acquire 58.96% stake in SML ISUZU for ₹555 crore

Stock Market Today: M&M share price remains in focus on Monday as it announced signing an agreement to acquire 58.96%stake in SML ISUZU for ₹555 Crore to strengthen its presence in commercial vehicles . It will acquire 43.96% stakes from Sumitomo Corp’s promoter,

M&M share Stock Market Today: M&M share price remains in focus on Monday as it announced signing an agreement to acquire 58.96% stake in SML ISUZU for ₹ 555 Crore to strengthen its presence in commercial vehicles segment. While Mahindra & Mahindra will be acquiring 43.

96% stakes from Sumitomo Corp’s promoter, it will also launch an open offer in accordance with SEBI Takeover Regulations M&M agreement for acquisition of majority stake in SML Isuzu Mahindra & Mahindra Ltd (M&M) over the weekend announced that it has entered into an agreement to acquire 58.96% stake in SML Isuzu Ltd. at ₹ 650 per share, which is an outlay of ₹ 555 crore.

For a total consideration of ₹ 555 crore, the Mumbai-based automaker will be acquiring the full 43.96 percent stake held by SML's promoter Sumitomo Corporation as well as a separate 15% stake held by SML's public shareholder Isuzu Motors Ltd. In addition and in line with the SEBI Takeover Regulations, M&M would also issue an obligatory open offer to acquire up to 26% of SML from eligible public shareholders.

M&M plans to strengthen its Commercial vehicles segment With a current market share of 3% in the >3.5T CV category and 52% in the <3.5T LCV segment, as per the company, the proposed acquisition is a step towards building a strong presence in that market.

Over the past few years, M&M's Trucks and Buses Division has achieved significant progress. The market share will double to 6% as a result of this acquisition as per the company, with plans to raise it to 10% to 12% by FY31 and 20%+ by FY36. M&M share price movement M&M share price had closed at 2862.

20 levels on the BSE on Friday, down 1.22% on a day the stock markets saw significant selling prssure. On the NSE the M&M share price had closed at ₹ 2864.

20, on Friday. The agreement for acquisition of majority stake in SML Isuzu was announced by M&M on Saturday and hence M&M share price will remain in focus on Monday Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.

We advise investors to check with certified experts before making any investment decisions..