Market Performance
On Monday, April 28, SML Isuzu's share price steeply fell, triggering a 10% lower circuit.
The stock opened at ₹1,701.95, marking a 4% drop from its previous close of ₹1,766.70.
Soon after, it plunged further to ₹1,590.05 per share, hitting the lower circuit limit.
In contrast, Mahindra & Mahindra (M&M) shares gained momentum, rising by nearly 2% and trading at ₹2,898.70 around 10:25 AM.
Main News
Mahindra & Mahindra announced a significant move over the weekend — signing an agreement to acquire a 58.96% stake in SML Isuzu for a total consideration of ₹555 crore.
Key details of the transaction:
- M&M will acquire a 43.96% stake from the promoter, Sumitomo Corporation.
- Public shareholder Isuzu Motors Ltd will buy an additional 15% stake.
- The deal values SML Isuzu at ₹650 per share.
Additionally, M&M plans to launch a mandatory open offer under SEBI Takeover Regulations.
The open offer price has been fixed at ₹1,554 per share, representing a 13% discount compared to Friday's closing price.
Company Details
This acquisition aligns with M&M's strategy to bolster its commercial vehicle (CV) business.
At present, M&M holds:
- 3% market share in the >3.5-tonne CV category
- 52% market share in the <3.5-tonne Light Commercial Vehicle (LCV) segment
Post-acquisition, M&M expects:
- Doubling of market share in the heavy CV segment to 6%
- Plans to further increase the market share to 10–12% by FY31
- Targeting 20%+ market share by FY36
M&M emphasized that acquiring SM Isuzu is a strategic move to reinforce its position in the Indian commercial vehicle market over the next decade.
Summary of the Article
The SML Isuzu share price faced heavy selling pressure, falling 10% after Mahindra & Mahindra announced the acquisition of a 58.96% stake.
The ₹555 crore deal at ₹650 per share strengthens M&M's position in the commercial vehicle market.
Meanwhile, M&M shares gained optimism surrounding the acquisition, hinting at a positive market sentiment for its expansion plans.
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