Mahindra & Mahindra (M&M) has acquired 58.96% controlling stake in SML Isuzu with a total investment of INR 555 crore. SML Isuzu Ltd. will be renamed to ‘SML Mahindra Limited’ after regulatory approvals.
In April 2025, M&M entered into an agreement to acquire a 58.96% equity stake in SML at Rs 650 per share, representing a total investment of Rs 555 crore.
“It is a big step for M&M towards establishing a strong presence in the >3.5T Commercial vehicles (CV) segment, where the company has a 3% market share presently, as compared to a 54.2% market share in the Sub-3.5 tonne LCV segment,” the company said.
This acquisition is said to double the market share to 6%, with company’s plan to increase this to 10% – 12% by FY31 and 20%+ by FY36.
As part of the transaction, M&M would acquire the entire stake of 43.96% held by Sumitomo Corporation, promoter of SML, and separately also acquire 15% stake held by Isuzu Motors Ltd, for an aggregate consideration of INR 555 crore. M&M would also launch a mandatory open offer for acquisition of up to 26% stake from eligible public shareholders of SML in accordance with the SEBI Takeover Regulations.
Mahindra & Mahindra Ltd. has appointed Vinod Sahay as Executive Chairman of SML Isuzu w.e.f. August 3 and Dr. Venkat Srinivas as the Executive Director & Chief Executive Officer of SML Isuzu Ltd w.e.f. from August 1.
Vinod Sahay will continue to serve as President – Aerospace & Defence, Trucks, Buses and Construction Equipment sector of Mahindra group in addition to his new role. Similarly, Dr. Venkat Srinivas will continue to serve as the Business Head for Mahindra Truck & Bus (MTB) and Construction Equipment (CE) in addition to this new role at SML Mahindra Limited.
SML has a pan-India presence in the ‘Trucks & Buses ‘segment with 16% market share in ILCV (Intermediate and Light Commercial Vehicles) Buses segment.
Shares of Mahindra & Mahindra Ltd. closed at Rs 3160.20 per unit on August 1 on BSE.
