Mahindra & Mahindra is looking to increase its stake in Carnot Technologies Pvt Ltd to 52.69% with an investment of around ₹14 crore, the company said on Wednesday.
M&M will make a primary infusion of approximately ₹2.5 crore for the subscription of 1,613 Series C CCCPS (cumulative compulsorily convertible preference shares) of Carnot of ₹100 each at a premium of ₹15,391.65 per CCCPS.
Further, it will have a secondary purchase for approximately ₹11.5 crore of 7,423 equity shares of ₹10 each at a premium of ₹15,481.65 per equity share, the filing added.
It currently holds 15.60% of the equity share capital of Carnot Technologies, which provides products and services related to internet-connected devices for monitoring the performance of vehicles and equipment.
On the reasons for the acquisition, M&M said: “Carnot is expected to support the company’s strategy by developing information technology solutions for its products, customers and businesses.”
The transaction is expected to be completed by around 31 March 2022 and Carnot will become a subsidiary of M&M.
M&M sales
The company had earlier said its total sales increased by 89% to 54,455 units in February.
Its total sales stood at 28,777 units in February 2021.
The Mumbai-based auto major’s passenger vehicle sales in the domestic market rose by 80% to 27,663 units last month as against 15,391 units in February last year.
Commercial vehicle sales increased to 23,978 units last month as compared with 11,559 units in February 2021.
The company said its exports last month stood at 2,814 units as against 1,827 units in the same month last year.
“All segments showed robust growth including SUVs at 79%, which registered the highest ever monthly volume. We expect demand to continue to remain strong as the Covid situation eases further,” said M&M automotive division CEO Veejay Nakra.
“We continue to closely monitor the semiconductor-related parts supply and take corrective action as appropriate,” he added.