Mahindra & Mahindra to Acquire 58.96% Stake in SML Isuzu for ₹555 Crore

M&M Targets Expansion in Commercial Vehicle Market with Strategic Acquisition

New Delhi, April 28 — Mahindra & Mahindra (M&M) has announced a major strategic move by entering into an agreement to acquire a 58.96% stake in SML Isuzu (SML) for an aggregate consideration of ₹555 crore. The acquisition is aimed at strengthening M&M’s position in the commercial vehicle (CV) segment, particularly in the >3.5-tonne category.

Following the announcement, M&M shares were trading higher at ₹2,919.10, up 1.99% on the Bombay Stock Exchange (BSE).

Deal Details and Future Plans

Under the agreement, M&M will purchase:

• 43.96% stake from Sumitomo Corporation, the promoter of SML

• 15% stake from Isuzu Motors, a public shareholder

The acquisition will be executed at ₹650 per share. Additionally, M&M will launch a mandatory open offer to acquire up to 26% stake from eligible public shareholders in compliance with SEBI’s Takeover Regulations.

The completion of the transaction is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI), and is expected within 2025.

Strategic Rationale Behind the Acquisition

M&M currently holds a 3% market share in the >3.5T commercial vehicle segment, compared to a dominant 52% market share in the <3.5T light commercial vehicle (LCV) segment.

Through this acquisition:

• M&M aims to double its CV market share to 6% initially.

• It has set an ambitious target to increase market share to 10–12% by FY31 and cross 20% by FY36.

The move aligns with M&M’s strategy to fortify its Trucks and Buses Division, which has witnessed steady growth over recent years.

Stock Performance and Company Overview

• Opening Price: ₹2,902.05

• Day’s High/Low: ₹2,940.25/₹2,882.45

• 52-Week High/Low: ₹3,276.30 (10-Feb-2025)/₹2,001.00 (29-Apr-2024)

• Market Capitalization: ₹3,61,071.03 crore

The company’s promoter holding stands at 18.45%, while institutional and non-institutional holdings are at 68.15% and 13.38%, respectively.

Mahindra & Mahindra, the flagship company of the Mumbai-based Mahindra Group, is one of India’s leading automobile manufacturers, with diversified interests across the automotive, farm equipment, IT, and finance sectors.