Mahindra & Mahindra gained 0.37% to Rs 765.95 at 9:45 IST on BSE after the company announced its foray into the sprayers business by acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments.
The announcement was made after market hours yesterday, 30 January 2018.Meanwhile, the S&P BSE Sensex was down 55.30 points or 0.15% at 35,979.65.
On the BSE, 6,129 shares were traded in the counter so far, compared with average daily volumes of 1.73 lakh shares in the past two weeks. The stock had hit a high of Rs 767.75 and a low of Rs 762.60 so far during the day. The stock had hit a record high of Rs 785.58 on 20 December 2017. The stock had hit a 52-week low of Rs 612.50 on 27 September 2017.
Mahindra & Mahindra (M&M) announced its foray into the sprayers business under the aegis of its farm equipment sector through the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments, a Maharashtra-based AgTech company (MITRA).
Under the transaction, which is expected to close by February 2018, M&M will acquire a 26% equity stake in MITRA through a fresh infusion of capital into the company. The association with Mahindra will help accelerate the growth of MITRA, which designs and manufactures proprietary sprayers for horticulture crops. It had a turnover of Rs 14 crore for FY 2017.
The cost of acquisition is Rs 8 crore. MITRA's existing shareholders will continue to be the shareholders in the company post Mahindra's investment.
M&M will announce its Q3 results on 9 February 2018. M&M reported 24.8% rise in net profit to Rs 1331.57 crore on 14% rise in net sales to Rs 12182.07 crore in Q2 September 2017 over Q2 September 2016.
M&M enjoys a leadership position in tractors and utility vehicles in India.
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