M&M subsidiary to sell stake in Mahindra Tsubaki Conveyor Systems Pvt Ltd

Mahindra Engineering and Chemical Products Limited ("MECPL"), a wholly owned subsidiary of Mahindra & Mahindra Ltd, has today agreed to sell its entire stake aggregating 49% of the paid-up Equity Share Capital held in Mahindra Tsubaki Conveyor Systems Private Limited ("MTC").

MTC is an associate of MECPL and not of the Company.

The cash consideration for the above sale is Rs. 58.89 crores to be received by MECPL.

Following the sale, MECPL's shareholding in MTC would become Nil, and MTC would cease to be an associate of MECPL.

The Revenue from Operations of Mahindra Tsubaki Conveyor Systems Private Limited ("MTC") for the year ended 31st March, 2021 was Rs. 64.25 crores. MTC is an associate of Mahindra Engineering and Chemical Products Limited ("MECPL"), a wholly owned subsidiary of the Company. MECPL is in the process of being merged into the Company.

The net worth of MTC as at 31st March 2021 was Rs. 64.85 crores. MTC contributed approximately 0.08% to the consolidated net assets of the Company for the year ended 31st March 2021.

Shares of Mahindra & Mahindra Limited was last trading in BSE at Rs. 838.70 as compared to the previous close of Rs. 818.30. The total number of shares traded during the day was 63038 in over 1995 trades.

The stock hit an intraday high of Rs. 840.55 and intraday low of 819.45. The net turnover during the day was Rs. 52496078.00.

Source : Equity Bulls

Keywords

MahindraandMahindra INE101A01026 StakeSale Associate MahindraTsubakiConveyorSystems