Mumbai, Aug 2
Mahindra and Mahindra (M&M) has completed the acquisition of a 58.96 per cent controlling stake in SML Isuzu Limited for Rs 555 crore.
Mumbai, Aug 2 (IANS) Mahindra and Mahindra (M&M) has completed the acquisition of a 58.96 per cent controlling stake in SML Isuzu Limited for Rs 555 crore. Following regulatory approvals, the company will be renamed ‘SML Mahindra Limited’. In April 2025, M&M had signed an agreement to buy this stake at Rs 650 per share.
The acquisition includes the entire 43.96 per cent stake held by Sumitomo Corporation, the promoter of SML, and a 15 per cent stake held by Isuzu Motors Limited.
M&M will also launch a mandatory open offer to acquire up to 26 per cent from eligible public shareholders, as per SEBI Takeover Regulations.
The company said the move is a significant step towards building a strong presence in the above 3.5-tonne commercial vehicle (CV) segment, where it currently has a 3 per cent market share.
In comparison, it enjoys a 54.2 per cent share in the sub-3.5-tonne light commercial vehicle (LCV) segment.
"It is a big step for M&M towards establishing a strong presence in the -3.5T Commercial vehicles (CV) segment, where the company has a 3 per cent market share presently, as compared to a 54.2 per cent market share in the Sub-3.5 tonne LCV segment," the company said.
M&M expects this acquisition to double its CV market share to 6 per cent immediately, with plans to grow it further to 10-12 per cent by FY31 and over 20 per cent by FY36.
As part of the leadership changes, M&M has appointed Vinod Sahay as Executive Chairman of SML Isuzu from August 3.
Dr Venkat Srinivas will take charge as Executive Director and Chief Executive Officer from August 1.
Both leaders will continue to hold their existing positions within the Mahindra Group alongside their new responsibilities.
SML has a nationwide presence in the trucks and buses segment and holds a 16 per cent market share in the intermediate and light commercial vehicle (ILCV) bus segment.
On August 1, shares of Mahindra & Mahindra closed at Rs 3,160.20 on the Bombay Stock Exchange (BSE).
— IANS
Reader Comments
Hope this doesn't lead to job cuts at SML Isuzu. Many families depend on these manufacturing jobs in Punjab. Mahindra should maintain all existing employees while expanding operations.
₹555 crore seems like a fair deal considering SML's market position. But Mahindra needs to work on improving product quality - their current CVs don't match Tata's reliability. Hope this acquisition brings better technology.
Interesting to see how this affects competition with Tata Motors and Ashok Leyland. The commercial vehicle market in India is getting more competitive with electric options coming in. Will Mahindra leverage Isuzu's diesel expertise or pivot to EVs?
As a truck owner, I've used both Mahindra and SML vehicles. Mahindra's service network is better but SML engines last longer. If they combine these strengths, it could be a game changer for small transporters like us.
The timing seems perfect with India's infrastructure push. More highways = more demand for heavy commercial vehicles. Smart acquisition by Mahindra to capture this growth. 🇮🇳
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