Key Details
Symbol (NSE): M&M
Corporate Action: Merger by Absorption
Record Date: Not Specified
Nature of Scheme: Merger by Absorption under Section 234 read with Sections 230-232 of Companies Act, 2013
Entities Involved:
- Transferor Company: Mahindra Investment Company (Mauritius) Limited (MICML)
- Transferee Company: Mahindra & Mahindra Limited
Demerged Company: Not Applicable (Merger, not demerger)
Resulting Company: Mahindra & Mahindra Limited (absorbing entity)
Share Entitlement Ratio: No share consideration involved. Entire share capital of MICML (111.90 crore) held by M&M will stand cancelled without any issuance of new shares.
Implied Capital Structure Impact: No change in issued share capital or paid-up capital of Mahindra & Mahindra Limited. The 111.90 crore paid-up capital of MICML will be extinguished upon cancellation.
Post-Allotment Listing Plan: MICML will cease to exist as a separate entity. No new listing involved.
Regulatory and Approval Status: Scheme requires approval from Hon'ble National Company Law Tribunal, Mumbai Bench (NCLT) or other Appropriate Authority. Board approval obtained on 30th July 2026.
Effective Date: Appointed Date is opening business hours of 1st April 2026, or such other date as directed by NCLT.
Financial Rationale:
- Ensure streamlined group structure by reducing and rationalizing number of overseas entities
- Eliminating duplicative communication and coordination efforts across multiple entities and countries
- Reduction in multiplicity of legal and regulatory compliances
- Optimal utilization of resources resulting into reduction in operational and compliance costs
Impact on Shareholders: No change in shareholding pattern of Mahindra & Mahindra Limited. Shareholders' rights and interests will not be affected. The scheme is not prejudicial to the interests of shareholders, creditors, employees and other stakeholders.
Financial Metrics (FY 2025-26)
Transferor Company (MICML):
- Paid-up Capital: ₹111.90 crore
- Net Worth: ₹134.95 crore
- Income from Operations: ₹4.69 crore
Transferee Company (M&M):
- Paid-up Capital: ₹601.02 crore
- Net Worth: ₹73,994.77 crore
- Income from Operations: ₹1,47,765.35 crore
Regulatory Compliance Notes
The transaction does not qualify as related party transaction under:
- MCA General Circular No. 30/2014 dated 17th July 2014
- Section 177 of Companies Act, 2013 (exemption for holding-wholly owned subsidiary transactions)
- Regulation 23(5)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015