Shares of Mahindra Group listed companies such as Mahindra and Mahindra, Mahindra Ugine Steel Company, Mahindra Forgings and Mahindra Composites have rallied up to 10% after entering into a share-swap arrangement with Spain’s CIE Automotive to create a global auto component manufacturer.
Mahindra Group has agreed to merge its five listed and unlisted subsidiaries and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5 per cent in CIE for euro 96.24 million (Rs 740 crore).
Mahindra Forgings, Mahindra Ugine Steel, Mahindra Composites, Mahindra Hinoday Industries (unlisted) and Mahindra Gears (unlisted) will be the participating companies in this deal, while the engineering, aerospace and steel businesses will be excluded from the process.
This development would expand the Group's geographical footprint, and grow the collective product portfolio going ahead, says analyst at Angel Broking.
Among the individual stocks, Mahindra Ugine Steel Company is locked in upper circuit of 10% at Rs 71.70, extending its Friday’s 15% rally on BSE. Mahindra Forgings has surged 8% to Rs 72.45, while M&M is up 2.3% at Rs 970 on BSE.
Mahindra Group has agreed to merge its five listed and unlisted subsidiaries and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5 per cent in CIE for euro 96.24 million (Rs 740 crore).
Mahindra Forgings, Mahindra Ugine Steel, Mahindra Composites, Mahindra Hinoday Industries (unlisted) and Mahindra Gears (unlisted) will be the participating companies in this deal, while the engineering, aerospace and steel businesses will be excluded from the process.
This development would expand the Group's geographical footprint, and grow the collective product portfolio going ahead, says analyst at Angel Broking.
Among the individual stocks, Mahindra Ugine Steel Company is locked in upper circuit of 10% at Rs 71.70, extending its Friday’s 15% rally on BSE. Mahindra Forgings has surged 8% to Rs 72.45, while M&M is up 2.3% at Rs 970 on BSE.
