In a major business move to strengthen its position in the commercial vehicle sector, Mahindra & Mahindra Ltd. (M&M) announced on Saturday that it will acquire a 58.96% stake in SML Isuzu Ltd. (SML) for ₹555 crore. The acquisition involves purchasing shares from Japan’s Sumitomo Corporation and Isuzu Motors Ltd.
Under the agreement, M&M will buy Sumitomo’s 43.96% stake and Isuzu’s 15% stake in SML at ₹650 per share. Following this, M&M plans to launch a mandatory open offer to acquire up to an additional 26% stake from public shareholders, as per SEBI regulations.
This acquisition aims to bolster M&M’s presence in the commercial vehicle market, particularly in vehicles above 3.5 tonnes. Currently, the company holds a 3% market share in this segment. M&M anticipates it doubling to 6% post-acquisition, with a long-term goal of reaching 12% by fiscal year 2031.
Anish Shah, Group CEO and Managing Director of Mahindra Group, stated, “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group’s vision of delivering 5x growth in our emerging businesses.” He emphasized that the move aligns with the company’s strategy to invest in high-potential areas demonstrating operational excellence.
Rajesh Jejurikar, Executive Director and CEO of M&M’s Auto and Farm Sector, highlighted that SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra’s existing offerings in the trucks and buses segment. He added, “This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilization.”
Founded in 1983, SML Isuzu has a notable presence in India’s truck and bus market, especially in the intermediate and light commercial vehicle (ILCV) bus segment, where it holds a 16% market share. In the fiscal year 2024, SML reported operating revenues of ₹2,196 crore and an EBITDA of ₹179 crore.
The transaction remains subject to regulatory approvals, including from the Competition Commission of India, and is expected to be completed by 2025. Kotak Investment Banking is acting as the financial advisor to M&M, while Khaitan & Co is serving as the legal advisor.
Share prices of SML ISUZU closed at ₹1,789 per share on Friday (25th April,2025), up 10% this month. M&M Motors’ share closed at ₹2,865 per share. Both figures are from the National Stock Exchange.
