Mahindra & Mahindra Ltd. (M&M) has announced that Brazil’s Embraer S.A. will acquire a 51% equity stake in Novavayu Aerospace Limited (NAL), a step-down wholly owned subsidiary of M&M, under an Investment Agreement signed the same day. The filing does not state the reason for the sale.
The company said it received intimation of the agreement at 10:43 p.m. IST on October 9. The transaction is expected to be completed on or before December 1, 2026.
Mahindra Defence Systems Limited (MDSL), which holds NAL, will receive aggregate consideration of approximately Rs 5,10,000 for the 51% stake. After the acquisition, NAL will cease to be a wholly owned subsidiary and will become an associate of MDSL.
NAL was incorporated on July 29, 2026, as a wholly owned subsidiary of MDSL. MDSL is a wholly owned subsidiary of Mahindra Advanced Technologies Limited, which is a wholly owned subsidiary of M&M.
NAL was not in existence during the financial year ended March 31, 2026, and did not contribute turnover, revenue, income, net worth or profits to M&M’s consolidated financial statements for that year. It has not generated any revenue or income to date.
Embraer S.A. is incorporated under the laws of Brazil, with its registered office in São José dos Campos, São Paulo. M&M said the buyer is not related to its promoter, promoter group or group companies, and the sale of shares does not fall within the ambit of related party transactions.