Mahindra Acquires Majority Stake in SML Isuzu, Gains Promoter Status
Mahindra & Mahindra Ltd. has successfully acquired a 58.96% stake in SML Isuzu Limited, enhancing its position as a promoter and establishing SML as a listed subsidiary. The acquisition, completed on August 1, 2025, involved purchasing 85,33,053 equity shares from Sumitomo Corporation and Isuzu Motors for Rs 555 crore. Additionally, M&M has initiated an open offer to purchase up to 26% of SML’s equity from public shareholders. This strategic move aims to bolster Mahindra's presence in the commercial vehicle segment, particularly in trucks and buses.
Mahindra Acquires Majority Stake in SML Isuzu, Gains Promoter Status
In a recent regulatory filing Mahindra & Mahindra Ltd. announced that they have completed the acquisition of 58.96% stake in SML Isuzu Limited. This move gives Mahindra promoter status and makes SML a listed subsidiary of the company.
Acquisition Details
Mahindra & Mahindra (M&M) announced it has acquired a total of 85,33,053 equity shares in SML Isuzu Ltd., representing 58.96% of the company’s share capital. The acquisition includes 43.96% from Sumitomo Corporation and 15% from Isuzu Motors. Both transactions were completed on August 1, 2025, following the execution of separate share purchase agreements dated April 26, 2025.
Open Offer in Progress
Alongside the acquisition, M&M has launched an open offer to buy up to 26% of SML’s equity from public shareholders. The offer is being made at Rs 1,554.60 per share under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This offer is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI).
Financial Considerations
The total outlay for acquiring the 58.96% stake was Rs 555 crore, with shares purchased at Rs 650 each from Sumitomo and Isuzu. The open offer, if fully subscribed, would increase M&M’s total stake to 84.96%.
Strategic Objective
SML Isuzu operates in the light and medium commercial vehicle segment and has a pan-India presence. Mahindra aims to use this acquisition to strengthen its position in the commercial vehicle market, especially in the trucks and buses segment.
SML Isuzu Background
Incorporated in 1983, SML Isuzu reported a turnover of Rs 2,196 crore in FY 2024. Its operations include the manufacture and sale of trucks, buses, and application-specific vehicles. The company’s main manufacturing facility is located in Punjab. SML has presence in India and exports to markets such as Nepal, Bangladesh, Bhutan, Ghana and Dubai.
Anish Shah, Group CEO & MD of the Mahindra Group, said, “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses. This acquisition is aligned with our capital allocation strategy for investing in high potential growth areas which have a strong right to win and have demonstrated operational excellence.”
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