Mahindra & Mahindra on Wednesday said it has signed a share purchase agreement to buy additional 34,249 equity shares of MITRA Agro Equipments Pvt Ltd, an associate of the company, from its existing shareholders.
The company currently holds 26 per cent of the equity share capital of Mitra, and after the completion of the above transaction, it will hold around 39 per cent of the equity share capital of Mitra on a fully diluted basis, Mahindra & Mahindra said in a filing to the BSE.
The purchase of additional equity shares in MITRA Agro Equipments Pvt Ltd would support the company's farm equipment business in the horticulture sector, it added.
After the acquisition of equity shares, Mitra would continue to remain an associate of the company, Mahindra & Mahindra said.
The purchase at which these shares are acquired is around Rs 7.1 crore in cash, it added.
The indicative time period for completion of the acquisition is by the end of March, 2020, the company said.
Shares of Mahindra & Mahindra on Wednesday closed at Rs 452.55 per scrip on the BSE, down 2.28 per cent from its previous close.