M&M stock trade higher on raising Stake in Sempo

One of India’s leading auto makers, Mahindra & Mahindra Limited (M&M) has inked a Share Subscription Agreement with Sampo Rosenlew OY, Finland, wherein it is agreed to subscribe to 822 equity shares and 192 compulsorily convertible preference shares. The investment will help Mahindra and Mahindra get a stronger footing in the combine harvester market.

In accordance with this acquisition, the voting rights of the company to 49.04 percent from 35 percent by acquiring shares and convertible instruments at a cost of 4.66 million euros, or approximately Rs 37.74 crore, M&M notified to the Stock exchanges.

This development evidently inspired investors, as the share price of Mahindra & Mahindra increased to an extent of Rs. 769.15 per share, higher by 1.69 percent during first afternoon hours of trade on the NSE, whose benchmark Nifty50 pared its early loses and trade higher at 10,910.90 up by 0.21 percent, around 2.50 pm.