Mahindra & Mahindra sells Trucks and Buses Division to SML Mahindra for ₹525 crore; Khaitan & Co, AZB advise

Mahindra & Mahindra Limited has transferred its Trucks and Buses Division (along with its employees, assets, intellectual property, licences, permits, insurance policies, contracts, rights and liabilities), to SML Mahindra Limited, as a going concern on a slump sale basis, for a consideration of ₹525 crore, subject to working capital adjustments.

Khaitan & Co advised Mahindra & Mahindra on this transaction. The Firm was the lead transaction counsel for the overall transaction, providing comprehensive legal and advisory support across all aspects of the transaction, including documentation, corporate compliances and structuring.

The transaction team consisted of Ashraya Rao (Partner), Vidur Sinha (Partner), Vaishanshi Bhardwaj (Principal Associate) and Hansaja Pandya (Senior Associate). The following provided assistance:

Structuring related advisory for listed entities and securities and corporate law related matters: Sudhir Bassi (Executive Director), Mehul Shah (Partner) and Sharad Abhyankar (Partner);

Structuring of the transaction for listed entities and related advisory: Arindam Ghosh (Partner), Gaurav Malhotra (Partner) and Shruti Kunisetty (Associate).

In 2025, the Firm had advised Mahindra & Mahindra on acquisition of SML Isuzu, which now operates as SML Mahindra.

AZB & Partners advised SML Mahindra on this transaction.

The transaction team consisted of Anil Kasturi (Senior Partner), Ashish Pareek (Partner), Achin Goel (Senior Associate), Shubham Toshniwal (Senior Associate) and Sushil Joon (Associate).

The Mahindra Truck and Bus Division generated revenue of approximately Rs 2,989 crore in FY26, accounting for around 2 per cent of Mahindra & Mahindra’s total operational income. Bringing the business under SML Mahindra is expected to create a stronger and more focused commercial vehicle company capable of competing more effectively in the domestic market.

The slump sale represents a strategic step for Mahindra Group towards creating a unified Truck & Bus business with a comprehensive presence across light, intermediate and heavy commercial vehicles, as well as buses in the >3.5T CV segment.

This move is in furtherance of and a strategic decision following Mahindra & Mahindra Limited's acquisition of a 58.97% stake in SML Isuzu from Sumitomo Corporation and Isuzu Motors Ltd. in August 2025, after which the listed truck and bus maker was renamed SML Mahindra Limited.

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