M&M to sell entire stake in Mahindra Sanyo Special Steel for Rs 212 cr

Automaker Mahindra & Mahindra (M&M) announced on Saturday that it has agreed to sell 34.75 lakh shares, constituting 22.81 per cent of the paid-up capital, of Mahindra Sanyo Special Steel Pvt Ltd (MSSSPL) to Japan-based Sanyo Special Steel Co Ltd. Through this Rs 212 crore deal M&M while be selling off its entire stake in MSSPL. 

“Following the sale, the company’s holding in MSSSPL would become nil,” M&M said in a regulatory filing.

It further added that the Mumbai-based automaker will receive Rs 211.99 crore from the stake sale.

“For the year ended March 31, 2021, the turnover of MSSSPL stood at Rs 834.43 crore constituting 1.12 per cent of the consolidated turnover of the company,” M&M said.

Meanwhile, Mahindra & Mahindra on Thursday had announced a price hike of 2.5 per cent on its range of vehicles. The firm explained that this hike would result in an increase of Rs. 10,000 to Rs. 63,000 on the ex-showroom prices across the range depending upon the model and the variant. Mahindra & Mahindra stated that this price hike is effective from today, April 14, 2022. 

The company, in an official statement, explained that this price revision is a  result of a continuous increase in prices of key commodities such as steel, aluminium, palladium, etc.

Mahindra & Mahindra added that it has taken necessary initiatives to partially offset the unprecedented hike in commodity prices to absorb the impact, passing a minimal percentage of cost increase to customers through a price revision. 

“The company is working with its sales and dealer network to communicate the new prices to their customers appropriately,” noted Mahindra & Mahindra. 

(With PTI Inputs)

Also read: Mahindra & Mahindra vehicles to cost more as it announces price hike of 2.5%