SML Isuzu, Mahindra & Mahindra shares to grab limelight today; here is all you need to know

As part of the transaction, the Mumbai-based automaker would acquire the entire stake of 43.96% held by Sumitomo Corporation, promoter of SML, and separately acquire a 15% stake held by Isuzu Motors Ltd, public shareholder of SML, for an aggregate consideration of ₹555 crore.

"The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses," Mahindra Group CEO & MD Anish Shah said.

This acquisition is aligned with the company's capital allocation strategy for investing in high-potential growth areas, which have a strong right to win and have demonstrated operational excellence, Shah added.

M&M Executive Director and CEO, Auto and Farm Sector, Rajesh Jejurikar, said SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra's existing offerings in the trucks and buses segment.

"This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, creating a unified supplier and network base, and improving plant utilisation," the CEO added.

Jejurikar further said, "Together, we are well-positioned to scale rapidly and drive profitable growth."

The transaction, including the open offer, is subject to the approval of the Competition Commission of India and is expected to be completed by 2025 under SEBI Takeover Regulations, M&M said.

About SML Isuzu Limited

SML Isuzu Limited is an Indian company that manufactures and sells commercial vehicles, and it is listed on the stock exchanges.

It is a joint venture between Sumitomo Corporation (Japan) and Isuzu Motors (Japan). The company was initially incorporated as Swaraj Vehicles Limited in 1983, later renamed Swaraj Mazda Limited, and finally renamed SML Isuzu Limited in 2011.

SML Isuzu produces a range of commercial vehicles, including buses, trucks, and special application vehicles.