M&M to acquire Sumitomo Corp’s promoter stake of 59% in SML Isuzu for ₹555 crore, open offer eyed | Stock Market News

Mahindra & Mahindra (M&M) announced on Saturday, April 26, that it has entered into an agreement to acquire a 58.96 per cent stake in SML Isuzu Ltd. at ₹650 per share, which is an outlay of ₹555 crore. M&M said it will make an open offer following SEBI takeover regulations.

The proposed acquisition is a step towards establishing a strong presence in the >3.5T CV segment, where M&M has a 3% market share today, as compared to a 52% market share in the <3.5T LCV segment. 

This acquisition will double the market share to 6%, with a plan to increase this to 10 – 12% by FY31 and 20%+ by FY36.

Incorporated in 1983, SML Isuzu is a listed company with well-recognized brands, a strong vintage and pan-India presence in the Trucks and Buses segment. SML has a market leading position in the ILCV Buses segment, with around 16% market share. The company reported operating revenue of ₹2,196 crore and EBITDA of ₹179 crore in FY24. It has profitable operations, frugal manufacturing, and strong engineering capabilities.

SML offers significant potential to unlock value through synergies in cost, network, brand, manufacturing, talent, and product complementarities. Our Trucks and Buses business has developed strengths by tapping into technology, design & innovation, and sourcing from our auto business.