Mahindra & Mahindra board approves merger with three subsidiaries

4 Aug 2023 , 03:54 AM

The merger of Mahindra Heavy Engines Limited (MHEL), Mahindra Two Wheelers Limited (MTWL), and Trringo.com Limited (TCL) with the firm was approved by the Mahindra & Mahindra board on Friday.

‘The entire assets and liabilities of MHEL, MTWL, and TCL to be transferred to and recorded by the Company at their carrying values,’ the company informed the exchanges.

The Company (directly and together with the nominee shareholders) owns the entire share capital of the three firms, it was said.

Additionally, the business stated that no shares of the company will be distributed in lieu of or in exchange for the company’s holdings in MHEL, MTWL, and TCL once the merger becomes effective.

Mahindra & Mahindra Limited reported a net profit of Rs 3,508 crore in the first quarter of FY24, an increase of 60%. In terms of the overall number of automobiles sold, the company saw an increase of 21% year over year. The car giant claimed that by restructuring its core operations and issuing a 5x challenge for growth diamonds, the company is on its way to delivering scale.

M&M stated that the merger’s appointed date would be April 1, 2023, or any other date that the National Company Law Tribunal, Mumbai Bench (NCLT) or any other body may command or allow.

For use in automobiles and genset applications, MHEL manufactures and sells engines and other auto components.

While this is going on, MTWL is dealing with the parts needed for Mahindra-produced two-wheelers, light-duty cars for passengers, and commercial trucks. To guarantee prompt spare part availability to consumers, it maintains a network of dealers spread out across India.

Last but not least, TCL operates a franchisee-based approach for renting out organised farm equipment.

According to the corporation, the merger will enable easier management by lowering operating and administrative costs as well as the number of entities.

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