The Mahindra and Mahindra board on Friday approved the merger of its wholly owned subsidiaries Mahindra Heavy Engines Limited (MHEL), Mahindra Two Wheelers Limited (MTWL) and Trringo.com Limited (TCL) with the company.
“The entire assets and liabilities of MHEL, MTWL and TCL to be transferred to and recorded by the Company at their carrying values,” the company informed the exchanges.
The entire share capital of the three companies is held by the Company (directly and jointly with the nominee shareholders), it added.
Further, upon the merger becoming effective, the company said that no shares of the company will be allotted in lieu or exchange of the holding of the company in MHEL, MTWL and TCL.
In the first quarter of FY24, Mahindra & Mahindra Limited delivered net profit of INR 3,508 crore, up 60%. The company recorded a 21% year-on-year growth in terms of total vehicles sold. The auto-giant said that the company is on its way to deliver scale by transforming its core businesses and a 5x challenge for growth gems.
As for the merger, M&M said that the appointed date of the scheme of merger would be April 1, 2023 or any other date as may be directed or approved by the National Company Law Tribunal, Mumbai Bench (NCLT) or any other authority.
MHEL is engaged in manufacturing and sales of engines and other auto components for vehicles and genset applications.
Meanwhile MTWL is engaged in dealing in parts required for two wheelers, passenger light motor vehicles and commercial vehicles manufactured and sold by Mahindra. It has a network of dealers spread across India to ensure timely availability of spare parts to customers.
Lastly, TCL deals in the business of organized farm equipment rentals through a franchisee-based model.
The company believes that the merger will help reduce the operating and administrative costs while also number of companies, thereby providing a scope for easy management.
