Mahindra Approves Up to ₹1,450 Crore Investment in SML Mahindra Rights Issue

Mahindra & Mahindra (M&M) has approved an investment of up to ₹1,450 crore in the proposed rights issue of its listed subsidiary, SML Mahindra Limited, which operates in the commercial vehicle segment. The investment was approved on November 6, 2026, following SML Mahindra's board approval to raise up to ₹1,450 crore through the issuance of equity shares.

Under the proposal, M&M will subscribe to its full rights entitlement, amounting to approximately ₹855 crore. The company has also approved an additional investment of approximately ₹595 crore to subscribe to further equity shares or any portion of the rights issue that remains unsubscribed.

The total investment, including any additional subscription, will not exceed ₹1,450 crore. The shares will be issued at a price determined by SML Mahindra and specified in the rights issue offer document. The number of shares allotted and M&M's resulting shareholding will be determined upon completion of the issue.

SML Mahindra's Commercial Vehicle Business and Financial Performance

SML Mahindra operates in the trucks and buses segment, with a presence in the intermediate and light commercial vehicle (ILCV) bus category. The company primarily operates in India and exports to markets including Bangladesh, Nepal, Bhutan and Ghana.

For the financial year ended March 31, 2026, SML Mahindra reported revenue from operations of ₹2,837.92 crore, compared with ₹2,398.99 crore in FY25 and ₹2,195.93 crore in FY24. Its net worth stood at ₹519.34 crore as of March 31, 2026.

According to M&M's regulatory filing, the proposed investment will be made through cash consideration, with shares to be allotted according to the rights issue schedule and applicable regulatory requirements.

M&M also stated that no change in control of SML Mahindra is envisaged following the proposed investment. The filing did not specify the intended utilisation of the funds raised through the rights issue.