Mahindra & Mahindra (M&M) said that it has signed a share purchase agreement for acquiring not more than 21,875 equity shares from the existing shareholders of M.I.T.R.A. Agro Equipments (MITRA), an associate of the company.
The shareholding of the company in MITRA would stand increased to 47.33% (on a fully diluted basis) from the present 39.02% (on a fully diluted basis) upon completion of the aforementioned transaction.
M.I.T.R.A. Agro Equipments manufactures and sells agricultural sprayers. MITRA operates in the fast-growing horticulture sprayers segment and is among the leading players in the organized segment. It had a turnover of Rs 2.9 crore for FY21.
The additional share purchase in MITRA would support the company's Farm Equipment Sector's growth in the horticulture equipment sector.
The cost of the said acquisition would not exceed Rs 7.005 crore (for upto 21,875 equity shares of Rs 10 each at a premium of Rs 3,192.23 per equity share).
M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.
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The company reported 22% fall in standalone net profit before exceptional items to Rs 1,353 crore in Q3 FY22 as compared with Rs 1,745 crore in Q3 FY21. Revenue rose by 8% YoY to Rs 15,239 crore during the quarter.
The scrip rose 0.23% to currently trade at Rs 863.75 on the BSE.
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