M&M to divest its stake from MSSSPL

By Chahat Gupta

Mahindra Sanyo Special Steel Private Limited (MSSSPL), is a joint venture between Mahindra & Mahindra Limited India (22.81%), Sanyo Special Steel Co., Ltd Japan (57.19%) and Mitsui & Co., Ltd Japan (20%). (2019 shareholdings depicted)

M&M decided to sell 34,75,264 equity shares of price ₹10 each to Sanyo for ₹610 per share, equating to Rs 211.99 crore. Following the final transaction in July, M&M will divest its 22.81% stake, to have zero stakes in MSSSPL. Sanyo’s shareholding will increase from 57.19% to 80%.

For FY’21, ₹834.43 crore was MSSSPL’s turnover, comprising 1.12% of M&M’s consolidated turnover, with its net worth equal to ₹112.43 crores. Meanwhile, there has been a price hike by 2.5% in M&M’s automobile range, to keep up with the increased steel, aluminum, and palladium prices.