SML Isuzu zooms 61% in 1 week as M&M eyes Sumitomo's stake in company

According to reports, Mahindra & Mahindra is in advanced discussions to acquire the entire stake held by Japan's Sumitomo Corporation in SML Isuzu.

SML Isuzu's share price extended its upward trend, surging by 8% to ₹1,785.80 on the BSE during Monday's intra-day trade. The rally followed reports that Mahindra & Mahindra (M&M) is in advanced talks to acquire the entire stake held by Japan’s Sumitomo Corporation in the company. 

In the last one week, the stock price of the commercial vehicle manufacturer zoomed 61 per cent from level of ₹1,106.90 on March 17. The stock had hit a 52-week low of ₹1,030.90 on February 28, 2024.

 

At 03:06 pm; SML Isuzu was trading 6 per cent higher at ₹1,749.40, as compared to 1.3 per cent rise in the BSE Sensex. The stock had hit a 52-week high of ₹2,406 on May 23, 2024.

 

 

The potential acquisition could mark M&M’s strategic entry into the trucks and buses segment, allowing it to expand beyond its current portfolio of passenger and light commercial vehicles. According to a CNBC-Awaaz report, M&M is evaluating a share price of ₹1,400–1,500 for SML Isuzu in the proposed deal. 

 

As of December 2024, Sumitomo Corporation, the promoter, owned 43.96 per cent of SML Isuzu, according to stock exchange data. Japan’s Isuzu Motors, known globally for its SUVs and pickup trucks, holds a 15 per cent stake in SML Isuzu through a separate entity, the shareholding pattern data shows.

 

Meanwhile, SML Isuzu informed the stock exchanges that the board of directors of the company at their meeting held on March 21, 2025, approved the resignation received from Junya Yamanishi, managing director and chief executive officer, effective from April 16, 2025.

 

The board approved the appointment of Yasushi Nishikawa as an additional director on the board with effect from April 17, 2025, subject to issue of DIN by the Ministry of Corporate Affairs (MCA) Govt. of India. The Board has also approved his appointment as managing director and CEO with effect from April 17, 2025 for a period of five years, subject to the approval of the shareholders and central government, if required, the company said. 

 

According to SML Isuzu, the demand for trucks is expected to be driven by macroeconomic growth, infrastructure development, and evolving industry dynamics. The government’s focus on infrastructure development, the Bharatmala project, the Smart Cities Mission, and dedicated freight corridors is expected to create a significant demand for commercial vehicles.

 

Overall demand for buses is expected to grow in the coming years, driven by increasing investments in the country's transit system. Both state and central governments are enthusiastic about advancing the transportation system. The company said it is looking at a good opportunity in special application vehicles such as refrigeration vans, water tankers, specialized garbage collection vehicles, dog vans, etc. Currently, the majority of the company’s export volumes come from the neighbouring countries - Bangladesh, Nepal and Bhutan.