Mahindra & Mahindra Acquires 59% Stake in SML Isuzu for Rs. 555 Crore

Mumbai: Mahindra & Mahindra (M&M) has completed the acquisition of a 58.96% controlling stake in SML Isuzu Limited for ?555 crore. Following regulatory approvals, the company will be renamed SML Mahindra Limited.

The acquisition deal, initially signed in April 2025 at ?650 per share, includes:

• The entire 43.96% stake held by Sumitomo Corporation (SML’s promoter), and

• A 15% stake held by Isuzu Motors Limited.

As required by SEBI’s takeover rules, M&M will also launch a mandatory open offer to acquire up to 26% from eligible public shareholders.

Strategic Move in the Commercial Vehicle Segment

M&M currently holds a 3% share in the above 3.5-tonne commercial vehicle (CV) segment and a dominant 54.2% share in the sub-3.5-tonne light commercial vehicle (LCV) segment.

The company views this acquisition as a major step to strengthen its position in the heavier CV category. M&M expects the deal to immediately double its CV market share to 6%, with a roadmap to grow it further to 10–12% by FY31 and over 20% by FY36.

Leadership Changes

Following the acquisition:

• Vinod Sahay has been appointed Executive Chairman of SML Isuzu effective August 3.

• Dr. Venkat Srinivas will serve as Executive Director and CEO from August 1.

Both leaders will continue their current roles within the Mahindra Group alongside their new responsibilities.

SML Isuzu has a nationwide presence in the trucks and buses segment and currently holds a 16% market share in the intermediate and light commercial vehicle (ILCV) bus category.

On August 1, Mahindra & Mahindra’s stock closed at ?3,160.20 on the Bombay Stock Exchange (BSE).

With inputs from IANS