Mahindra & Mahindra’s Strategic Slump Sale to SML Mahindra
Mahindra & Mahindra Limited has announced the transfer of its Trucks and Buses Division to SML Mahindra Limited for ₹525 crore, with adjustments based on working capital. This transaction is structured as a slump sale, encompassing the division’s employees, assets, intellectual property, licenses, and contractual obligations.
Khaitan & Co’s Legal Role in the Transaction
Leading the legal advisory for Mahindra & Mahindra, Khaitan & Co played a pivotal role in the transaction. The firm provided holistic legal support, including documentation, corporate compliance, and transaction structuring. The transaction team was spearheaded by Partners Ashraya Rao and Vidur Sinha, with support from Principal Associate Vaishanshi Bhardwaj and Senior Associate Hansaja Pandya. Additional expertise came from Sudhir Bassi, Mehul Shah, and Sharad Abhyankar, who focused on structuring related advice for listed entities.
Notably, Khaitan & Co had previously advised Mahindra & Mahindra on the acquisition of SML Isuzu, which has since been integrated into SML Mahindra.
AZB & Partners’ Advisory to SML Mahindra
AZB & Partners represented SML Mahindra in this significant transaction, with a team led by Senior Partner Anil Kasturi and Partner Ashish Pareek. They were joined by Senior Associates Achin Goel and Shubham Toshniwal, and Associate Sushil Joon, providing comprehensive legal support.
Impact of the Transaction
The Mahindra Truck and Bus Division reported a revenue generation of approximately ₹2,989 crore in FY26, forming about 2% of Mahindra & Mahindra’s total earnings. The integration into SML Mahindra is poised to strengthen the entity’s presence in the commercial vehicle market, enhancing its competitive edge.
More Read
This transaction is a strategic move towards consolidating Mahindra Group’s position in the commercial vehicle sector, spanning light, intermediate, and heavy commercial vehicles. It is a continuation of Mahindra & Mahindra Limited’s acquisition strategy, following its significant stake purchase in SML Isuzu in August 2025.
