Postal ballot seeks approval for the transfer of Mahindra & Mahindra’s commercial vehicle business and related-party transactions.
Recent reports suggest that SML Mahindra has initiated a postal ballot process seeking shareholder approval for the proposed acquisition of Mahindra & Mahindra’s (M&M) Truck and Bus Division (MTBD). The transaction, valued at ₹525 crore, is part of the Mahindra Group’s plan to bring its truck and bus operations under a single listed entity.
The voting process opened on August 8, 2026, and is scheduled to remain open until September 6. Eligible shareholders will vote electronically through NSDL, with July 31, 2026 set as the cut-off date.
The acquisition is to be structured as a slump sale.
The proposed transaction involves transferring MTBD to SML Mahindra as a going concern through a slump sale. The consideration is ₹525 crore, subject to working capital adjustments. The transfer covers the business undertaking’s assets, intellectual property, licences, contracts and related liabilities. However, manufacturing operations for Mahindra-branded trucks and buses are expected to continue under a contract manufacturing arrangement with M&M. This structure is intended to maintain continuity of production during the transition.
The transaction follows M&M’s acquisition of a 58.97% controlling stake in SML Isuzu in August 2025, after which the company was renamed SML Mahindra. The proposed transfer represents another step in restructuring the group’s commercial vehicle operations.
The acquisition is set to increase SML Mahindra’s operating scale.
MTBD reported revenue of ₹2,989 crore in financial year 2025-26 and sold 14,832 vehicles during the year. SML Mahindra, meanwhile, reported sales of 16,632 vehicles over the same period.
The combined business would cover a broader range of commercial vehicles, including light, intermediate and heavy trucks as well as buses above 3.5 tonnes. The consolidation is expected to simplify the group’s commercial vehicle structure and bring its truck and bus operations under one entity.
A separate resolution seeks approval for material related-party transactions with M&M of up to ₹4,660 crore over the coming year. These transactions are proposed to be carried out in the ordinary course of business and on an arm’s-length basis. The postal ballot therefore covers both the acquisition and the proposed related-party transaction framework. The outcome will determine the next formal step towards completing the restructuring.
SML Mahindra and M&M are targeting completion of the acquisition during FY2027, subject to shareholder and other applicable approvals. The restructuring doesn’t, by itself, alter SML Mahindra’s shareholding pattern.
