Mahindra -; Mahindra to increase stake acquisition in Carnot to 52.69%; Stock up 1%

17 Mar 2022 , 10:20 AM

Mahindra & Mahindra Limited has on Wednesday signed a Share Purchase Agreement (Secondary Purchase) and a Share Subscription and Shareholders Agreement (Primary Infusion) with Carnot Technologies Private Limited, an Associate of the Company.

Pursuant to the Secondary Purchase and Primary infusion the Company will acquire 7,423 Equity Shares from its existing Shareholders and also subscribe to 1,613 Series C Compulsory Convertible Cumulative Participating Preference Shares (Series C CCCPS), respectively of Carnot.

Upon completion of these transactions, the shareholding of the Company in Carnot will increase from 15.60% of the equity share capital (48.05% of the share capital on a fully diluted basis) to approximately 52.69% of equity share capital (68.97% of the share capital on a fully diluted basis) of Carnot and it will become a Subsidiary of the Company. The transaction is expected to be completed by around March 31, 2022.

At around 10.18 am, Mahindra & Mahindra Ltd was trading at Rs782.05 per piece up by Rs8.75 or 1.13% from its previous closing of Rs773.30 per piece on the BSE.

Carnot is an Indian company, which provides products and services related to internet connected devices for monitoring performance of vehicles and equipment. It had a turnover of Rs6.5 crore for the Financial Year ended March 31, 2021.

“Carnot is expected to support the company’s strategy by developing information technology solutions for its products, customers and businesses,” company said in a filing on Wednesday.