M&M Sell Its Entire Stake In TVS Automobile Solutions
- M&M would receive Rs 45 crore from the deal.
- In TASPL, M&M holds 3,32,195 equity shares of Rs 10 each.
- M&M achieved the No. 1 position in SUV Revenue Market Share in H2 FY22.
New Delhi: Mahindra and Mahindra (M&M), on Monday, announced that it will sell all of its 2.76 per cent stake in TVS Automobile Solutions Private Limited (TASPL). Currently, the M&M holds 3,32,195 equity shares of Rs 10 each and 100 Compulsorily Convertible Preference Shares of Rs 10 each in TASPL.
The company said that its holding in TASPL would become nil following the sale, which is expected to be completed by June 22nd, 2022. Consideration received from such sale/disposal would be Rs 45 crore, M&M added. Mahindra group had posted a 427 per cent jump in its standalone profit after tax at Rs 1,292 crore for the quarter ended March 31st, 2022.
Interestingly, M&M’s announcement came after Rajesh Jejurikar, Executive Director, Auto and Farm Sectors, Mahindra and Mahindra, in a recent online press conference, stated that the company will not enter the lucrative electric two-wheeler space. He further added that the company will focus on electric passenger and commercial vehicles instead.
The company’s revenue for Q4 FY22 stood at Rs 17,124 crore, a 28 per cent jump over the last year’s corresponding quarter. EBITDA stood at 1,946 crore for the Q4 FY22. Net profit for the entire year was up 401 per cent at Rs 4,935 crore against the previous fiscal year. Revenue was up 29 per cent at Rs 57,446 crore compared to last year. The company had managed to sell 1,52,204 vehicles in Q4 of FY22, up 43 per cent from Q4 FY21.