M&M shares hit fresh 52-week high on complete stake sale in New Delhi Centre for Sight for ₹425 crore

In a filing to the exchanges the company said that its wholly-owned subsidiary Mahindra Holdings Limited (MHL) on Tuesday executed a Share Purchase Agreement (SPA) with three buyers to sell its entire stake of 30.83% of the paid-up capital of NDCFS on a fully diluted basis.

The buyers in this sale include Space Investments Limited, Defati Investments Holdings BV and Infinity Partners, and neither of them belongs to the Promoter or Promoter Group Companies of Mahindra Holdings Ltd, M&M informed the stock exchanges.

The SPA was executed by Mahindra Holdings on May 14, 2024, with the three buyers and NDCFS, along with the promoters of the eye care chain. The entire stake sale deal has been conducted for an aggregate consideration of ₹425.39 crore.

Space Investments bought 25.7% of the stake offered for sale on a fully diluted basis for a consideration of ₹354.56 crore, while Defati Investments Holdings BV picked a 2.85% stake in New Delhi Centre for Sight Limited for ₹39.4 crore, along with Infinity Partners purchasing a small 2.28% stake in NDCFS for a consideration of ₹31.43 crore.

As per the Companies Act, 2013, NDCFS is an associate company of Mahindra Holdings as well as a wholly owned subsidiary of MHL and ‘that of the Company under Indian Accounting Standards’, Mahindra & Mahindra stated in its latest exchange filing.

However, on the completion of the aforestated stake sale, the shareholding of MHL has become ‘Nil’ in NDCFS, and the latter no longer is an Associate Company of MHL, along with a joint venture.

In April 2024, the company’s domestic sales across vehicle categories grew by 13% to 68,614 vehicles against 60,481 vehicles in the year-ago period. The company’s domestic sales of vans and utility vehicles grew by 32% in April 2024 to 41,008 vehicles from 34,698 vehicles in the corresponding month of the previous year.

Mahindra and Mahindra Ltd shares were trading 1.06% higher at ₹2,294 per piece at 1:06 pm on the NSE.