Mahindra & Mahindra Ltd Divests Entire Stake in Erkunt Foundry
Mahindra & Mahindra Ltd has announced the divestment of its entire stake in Erkunt Sanayi Anonim Şirketi, a step-down subsidiary. Mahindra Overseas Investment Company (Mauritius) Limited (MOICML), a wholly owned subsidiary of the Company, along with its wholly owned subsidiary, Erkunt Traktör Sanayii Anonim Şirketi (Erkunt Traktör), entered into a Stock Purchase Agreement (SPA) with Hisarlar Makina Sanayi ve Ticaret A.Ş., Mr. Oguzhan Sahinkaya, and Mr. Bunyamin Sarioglu (collectively, the Buyers).The transaction involves MOICML and Erkunt Traktor selling their aggregate 99.04% stake in Erkunt Sanayi Anonim Şirketi, known as Erkunt Foundry, to the Buyers. The Company stated that the exit from the foundry business aligns with its capital allocation framework.
Upon the completion of this transaction, Erkunt Foundry will cease to be a subsidiary of MOICML and consequently, a step-down subsidiary of Mahindra & Mahindra Ltd.
Transaction Details and Financial Contributions
Details regarding the divestment were provided for review, outlining the financial contribution and operational specifics of Erkunt Foundry during the last financial year.The contribution figures for Erkunt Sanayi Ticaret Anonim Şirketi ('Erkunt Foundry') for the year ended March 31, 2025, are as follows:
| Metric | Value | Percentage Contribution |
|---|---|---|
| Revenue from operations | Rs. 821.00 crore | 0.49% to consolidated turnover (after inter-company elimination) |
| Net Worth (as on 31 March 2025) | Rs. 382.29 crore | 0.49% of consolidated net worth (after adjustments) |
As of December 31, 2025, the Net Worth of Erkunt Foundry was reported as Nil.
Timeline and Consideration
The agreement for the sale was entered into on April 10, 2026. The expected date for the completion of the sale/disposal is set for July 30, 2026.The consideration expected to be received by MOICML and Erkunt Traktor is Turkish Lira 1,00,000, equivalent to approximately Rs. 2,13,000 at the prevailing foreign exchange rate. This consideration is noted in the context of MOICML infusing Turkish Lira 1.2 billion (approximately Rs. 256 Crores) to extinguish external debt and fund operations until the transaction closes.
Buyer Information
The Buyers include the Turkish entity Hisarlar Makina Sanayi ve Ticaret A.Ş., alongside two of its shareholders of Turkish Citizenship: Mr. Oguzhan Sahinkaya and Mr. Bunyamin Sarioglu. The documentation confirms that the Buyers are not related to the Promoter/Promoter Group/Group Companies of Mahindra & Mahindra Ltd.The transaction was confirmed to not fall within related party transactions as defined under SEBI (Listing Obligations and Disclosure Requirements) Regulations.
Stock Price Movement
Closing out Friday, Mahindra & Mahindra Ltd shares settled at ₹3261.80, up 2.98% for the day. The stock explored a range throughout the session, carving out a low near ₹3179.05 before touching a high near ₹3269.00.Source:
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