Mahindra & Mahindra Ltd has completed the absorption of its three wholly-owned subsidiaries – Mahindra Heavy Engines Ltd (MHEL), Mahindra Two Wheelers Ltd (MTWL) and Trringo.com Ltd.
Through this merger, M&M looks to consolidate its businesses, streamline its holding structure, and reduce regulatory compliances and operating and administrative costs.
The merger, under which all assets and liabilities of the subsidiaries will be transferred to M&M, received approval from the National Company Law Tribunal’s Mumbai bench in May. All three companies ceased to be subsidiaries of M&M on June 6, when the merger scheme became effective.
MHEL manufactures and sells engines and other auto components for vehicles and genset applications. MTWL deals in parts required for the range of two-wheelers, passenger light motor vehicles and commercial vehicles made and sold by M&M, whereas Trringo.com is in the organised farm equipment rentals business through a franchisee-based model.
As of March 31, MHEL had a net worth of Rs 656.40 crore, while MTWL’s net worth stood at Rs 255.16 crore. Trringo.com had a net worth of Rs 1.82 crore.
M&M noted that there is no change in its shareholding pattern, pursuant to the merger, as the company has not issued any shares in the same.