Mahindra and Mahindra (M&M) announced on Monday that they would sell their entire 2.76% stake in TVS Automobile Solutions Private Limited (TASPL). Currently, the M&M holds 3,32,195 equity shares of Rs 10 each and 100 mandatory convertible preference shares of Rs 10 each in TASPL.
The automaker, in a regulatory filing, said: “We wish to inform you that DRSR Advisory Services LLP (“DRSR”) has, following the exercise of a call option available to DRSR under the agreement of option, served notice of appeal requesting the company to sell 3,32,195 participating shares of Rs. 10 each and 100 mandatory convertible preference shares of Rs. 10 each held by the Company in TVS Automobile Solutions Private Limited constituting 2 .76% of the paid-in capital of TASPL on a fully diluted basis.
The company also added that its stake in TASPL will become nil after the sale, which is expected to close by June 22, 2022. The consideration received from this sale/divestment would be Rs 45 crore, M&M added.
Interestingly, M&M’s announcement came after Rajesh Jejurikar, Executive Director, Automotive and Agricultural Sectors, Mahindra & Mahindra, in a recent online press conference, said the company will not enter the lucrative electric two-wheeler space. He further added that the company would instead focus on electric passenger and utility vehicles.
Last week, the Mahindra Group recorded a 427% increase in its autonomous after-tax profit to Rs 1,292 crore for the quarter ended March 31, 2022. corresponding quarter of last year.
EBITDA was 1,946 crore for Q4 FY22. Net profit for the full year increased by 401% to Rs 4,935 crore from the prior year. Revenue increased by 29% to Rs 57,446 crore compared to last year.
The company had managed to sell 1,52,204 vehicles in the fourth quarter of FY22, up 43% from the fourth quarter of FY21. It also recorded the highest ever self-generated revenue for the segments automotive and agricultural at Rs 55,300 crore for FY22.