M&M to add 9.12% stake in Carnot Technologies

Mahindra & Mahindra (M&M) on Thursday said it will acquire additional 9.12% stake for about Rs 12 crore in associate firm Carnot Technologies.

Carnot Technologies 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 Rs 17.3 crore for the financial year ended 31 March 2020.

M&M expects Carnot to support company's strategy by developing information technology solutions for its products, customers and businesses.

M&M on 3 September 2020 signed an agreement to acquire additional 1,825 equity shares, 4,480 seed compulsory convertible cumulative participating preference shares and 589 series A compulsory convertible cumulative participating preference shares from the existing shareholders of Carnot Tech. Additionally, M&M will subscribe to 2,298 series B compulsory convertible cumulative participating preference shares of Carnot.

M&M currently holds approximately 6.48% stake in Carnot. Post acquisition, its stake will rise to approximately 15.60%. The total cost of the said acquisition is Rs 12 crore and the transaction is expected to be completed on or before 30 September 2020.

Mahindra & Mahindra's (M&M's) business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

The company's consolidated net profit slumped 93.9% to Rs 54.64 crore on a 37.3% decline in net sales to Rs 16,321.34 crore in Q1 June 2020 over Q1 June 2019.

The scrip shed 0.21% to currently trade at Rs 642.95 on the BSE. It had traded in the range of 626.70 and 649.60 so far during the day.

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