Mumbai: Mahindra and Mahindra (M&M) has completed the acquisition of a 58.96 per cent controlling stake in SML Isuzu Limited for Rs 555 crore. 

Following regulatory approvals, the company will be renamed ‘SML Mahindra Limited’. In April 2025, M&M had signed an agreement to buy this stake at Rs 650 per share.

The acquisition includes the entire 43.96 per cent stake held by Sumitomo Corporation, the promoter of SML, and a 15 per cent stake held by Isuzu Motors Limited.

M&M will also launch a mandatory open offer to acquire up to 26 per cent from eligible public shareholders, as per SEBI Takeover Regulations.

The company said the move is a significant step towards building a strong presence in the above 3.5-tonne commercial vehicle (CV) segment, where it currently has a 3 per cent market share.

In comparison, it enjoys a 54.2 per cent share in the sub-3.5-tonne light commercial vehicle (LCV) segment.

"It is a big step for M&M towards establishing a strong presence in the >3.5T Commercial vehicles (CV) segment, where the company has a 3 per cent market share presently, as compared to a 54.2 per cent market share in the Sub-3.5 tonne LCV segment," the company said.

M&M expects this acquisition to double its CV market share to 6 per cent immediately, with plans to grow it further to 10-12 per cent by FY31 and over 20 per cent by FY36.

As part of the leadership changes, M&M has appointed Vinod Sahay as Executive Chairman of SML Isuzu from August 3.

Dr Venkat Srinivas will take charge as Executive Director and Chief Executive Officer from August 1.

Both leaders will continue to hold their existing positions within the Mahindra Group alongside their new responsibilities.

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

On August 1, shares of Mahindra & Mahindra closed at Rs 3,160.20 on the Bombay Stock Exchange (BSE).

(IANS)