Main Disclosure – Disinvestment Details
Target Entity:
Novavayu Aerospace Limited (NAL)
Percentage Stake Disinvested:
51% equity stake
Post-Transaction Holding:
NAL will cease to be a wholly owned subsidiary. It will become an associate of Mahindra Defence Systems Limited (MDSL), which is a step-down wholly owned subsidiary of Mahindra & Mahindra Limited.
Counterparty/Buyer:
Embraer S.A., a company incorporated under the laws of the Federative Republic of Brazil. Its registered office is at Avenida Brigadeiro Faria Lima, 2170, Putim, São José dos Campos, São Paulo, 12227-901, Brazil.
Mode of Consideration:
Cash
Valuation or Price Basis:
The disclosure states the aggregate consideration but does not specify the valuation methodology or basis.
Consideration Received:
MDSL will receive aggregate consideration of approximately Rs. 5,10,000 (Five Lakh Ten Thousand Rupees) for the sale.
Rationale for Disinvestment:
The specific rationale is not explicitly stated in the document.
Impact on the Company:
The transaction will result in NAL ceasing to be a wholly owned subsidiary of the group.
Business Profile of Target Entity:
NAL was incorporated on 29th July 2026 as a wholly owned subsidiary of Mahindra Defence Systems Limited (MDSL). It was not in existence during the financial year ended 31st March 2026. As of the disclosure date (9th October 2026), NAL has not generated any revenue, income, or profits.
Related Party Status:
No. The buyer, Embraer S.A., is not related to the Promoter/Promoter Group/Group Companies of Mahindra & Mahindra Limited. The transaction does not fall within the ambit of related party transactions.
Approvals Required:
The document does not specify any regulatory or shareholder approvals required for the transaction.
Indicative Timeline:
The transaction is expected to be completed on or before 1st December 2026.
Other Updates:
No other disclosures are present in the document.