Mahindra & Mahindra Ltd (M&M) disclosed a dilution of stake in Mahindra Summit Agriscience Limited (MSAL), a joint venture company. MSAL is a step-down subsidiary of M&M through its subsidiary Mahindra Agri Solutions Limited (MASL), which held 60% of MSAL's paid-up equity share capital, while Summit Agro International Limited, Japan (SAI) held the remaining 40%.
The company received intimation at 05:31 p.m. on 17th June 2026 regarding the execution of two agreements:
1. A Share Subscription Agreement (SSA) between SAI and MSAL for SAI's subscription to Class A Equity Shares of MSAL. These shares have a face value of Re.1 per share and carry differential voting rights.
2. A First Amendment Agreement to the Shareholders' Agreement dated 12th October 2018, entered among MASL, SAI, and MSAL. This agreement provides for equal representation of MASL and SAI on the Board of Directors of MSAL.
Following the issuance and allotment of Class A equity shares to SAI, the shareholding pattern will change to:
- MASL: 58.8% of total paid-up share capital (including Class A Equity Shares)
- SAI: 41.2% of total paid-up share capital (including Class A Equity Shares)
Despite the differential shareholding percentages, both MASL and SAI will have equal voting rights in MSAL.
As a result of this transaction, MSAL will cease to be a subsidiary of MASL and instead become an associate company, while continuing as a joint venture between MASL and SAI. Consequently, MSAL will also cease to be a step-down subsidiary of Mahindra & Mahindra Ltd.
Financial Information
- Revenue from Operations of MSAL for FY26 (ended 31st March 2026): ₹236.09 crore
- Net Worth of MSAL as on 31st March 2026: ₹35.93 crore
- MSAL's contribution to M&M's consolidated net worth (excluding noncontrolling interest): ₹21.56 crore (0.023%)