Mahindra & Mahindra Limited has informed the Exchange about Divestment of entire Stake in Erkunt Sanayii Anonim Şirketi, a step-down subsidiary of the Company
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Mahindra & Mahindra is exiting its Turkish foundry business by selling its entire 99.04% stake in Erkunt Sanayii Anonim Şirketi (Erkunt Foundry) to Hisarlar Makina and two Turkish individuals. The deal was signed on 10th April 2026 and is expected to close by 30th July 2026. The sale consideration is a nominal Turkish Lira 1,00,000 (~Rs. 2.13 lakh), but Mahindra's subsidiary MOICML will infuse around Rs. 256 crore to clear Erkunt Foundry's external debt and fund operations until closing. Erkunt Foundry contributed only 0.49% (~Rs. 772 crore) to M&M's consolidated revenue and 0.49% of consolidated net worth as of March 2025, with net worth already at nil by December 2025. The buyers are unrelated to the promoter or group companies, and the exit is described as part of M&M's capital allocation framework.
This is a clean-up of a non-core, small international subsidiary that was effectively worthless (net worth nil by Dec 2025), so the financial impact on shareholders is minimal. The ~Rs. 256 crore debt infusion is a one-time cash outflow, but the overall effect is neutral to slightly positive as it removes a loss-making drag from the books.