M&M sells its 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, representing 22.81 percent of the paid-in capital, of Mahindra Sanyo Special Steel Pvt Ltd (MSSSPL) to Japan’s established Sanyo Special Steel Co Ltd. Through this Rs 212 crore deal M&M while selling its entire stake in MSSPL.

“After the sale, the company’s stake in MSSSPL would be zero,” M&M said in a registration application.

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

“For the year ended March 31, 2021, MSSSPL’s revenue was Rs 834.43 crore, representing 1.12 percent of the company’s consolidated revenue,” said M&M.

Meanwhile, Mahindra & Mahindra had announced a 2.5 percent price increase for their range of vehicles on Thursday. The company explained that this increase would result in an increase of Rs. 10,000 to Rs. 63,000 on ex-showroom prices across the range, depending on model and variant. Mahindra & Mahindra stated that this price increase is effective as of today, April 14, 2022.

The company explained in an official statement that this price overhaul is the result of a continued rise in the prices of key commodities such as steel, aluminum, palladium, etc.

Mahindra & Mahindra added that it has taken the necessary initiatives to partially offset the unprecedented rise in raw material prices to mitigate the impact, by passing on a minimal percentage of the cost increase to customers through a price review.

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

(With PTI inputs)

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