SML Mahindra hit a day high of ₹4,566, the 20% upper circuit, after its board approved buying M&M’s truck and bus division for ₹525 crore.

The deal itself is a slump sale, meaning Mahindra & Mahindra is handing over the entire truck and bus business, including its assets, employees, licenses and liabilities, as one package to its listed subsidiary.

Both companies expect to sign the formal business transfer agreement on or before August 7, and the whole transaction should wrap up sometime during FY2027, pending regulatory approvals.

This move brings Mahindra’s commercial vehicle operations under a single roof. Group CEO Anish Shah said the idea is to build one focused entity that can lead the truck and bus segment rather than running it as a separate arm within M&M.

Executive director Rajesh Jejurikar added that combining the two businesses should unlock efficiencies across operations and technology while still keeping both brands intact.

Here, too, there is some context that is important to understand. In August 2025, M&M acquired a majority share in what was then known as SML Isuzu from Sumitomo Corp. and Isuzu Motors. The business then changed its name to SML Mahindra.

This latest transaction is effectively the next step in that integration. The truck and bus division being transferred generated Rs 2,989 crore in revenue during FY26, roughly 2% of M&M’s total operating income, and was carried on M&M’s books at about Rs 481 crore.

Since SML Mahindra is a listed subsidiary of M&M, this counts as a related party transaction, though the company says the pricing was done at arm’s length, based on a valuation report from GT Valuation Advisors.

SML Mahindra shares closed the day at ₹4,566, up 20% or ₹761, on the NSE.

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