Mahindra Holdings Limited (MHL), a wholly owned arm of Mahindra & Mahindra (M&M), on Thursday said it has entered into definitive agreements with Prudential Management & Services to acquire stakes in two group companies — Mahindra & Mahindra Contech Limited (MMCL) and PSL Media & Communications Limited (PSL).
Following the transaction, both MMCL and PSL will move from associate status to become subsidiaries of MHL, and consequently of M&M.
The company said the restructuring is part of its ongoing efforts to simplify its corporate structure, improve operational efficiency and cut costs, while also ensuring greater transparency in its reporting.
As part of the deal, M&M’s stake in MMCL will rise to 99.99% and in PSL to nearly 72%. In turn, New Democratic Electoral Trust (NDET) and Kota Farms Services Limited (KFSL), which are linked to the acquired entities, will also become subsidiaries of M&M.
MMCL, set up in 1992, provides advisory, consultancy and human resource services, while PSL, incorporated in 1939, has interests in publishing and advertising.
NDET functions as a Section 8 not-for-profit company that allocates funds to registered political parties, while KFSL operates in the agriculture and food services sector, with exposure to inputs and allied businesses.
The acquisition, the company added, is expected to streamline group operations and consolidate control over these entities, reducing overlaps and aligning resources with M&M’s long-term growth strategy.
Shares of Mahindra & Mahindra ended at ₹3,597 on the NSE, down 0.21% on Thursday.
