Mahindra Group To List 10 Units, Sell Loss-Making Arms, CEO-Designate Anish Shah Tells Mint
“We would expect two to three businesses to IPO in the next two to three years,” Anish Shah, group CFO, told Mint.
Mahindra & Mahindra Ltd. plans to list the group's most promising units over the next five to seven years to unlock value and sell loss-making businesses including SsangYong Motor Co., according to a report by Mint.
The cars-to-real estate conglomerate has identified 10 companies across sectors such as clean mobility, clean energy, rural, financial services, infrastructure and technology, the report quoted Anish Shah, group chief financial officer, as saying in an interview. The move is part of M&M's strategic plan to ensure an 18% return on equity across all businesses in the mid term, he said.
“We would expect two to three businesses to IPO in the next two to three years; some will go public in three to five years and others in five to seven years,” Shah, set to succeed Pawan Goenka as the group's chief executive officer in April, said.
M&M’s shares rose as much as 3.2% in early trades before paring bulk of the gains and was trading 0.7% higher than opening price at noon on Thursday. It rallied 10.75% on Wednesday.
The 10 "gems" the group plans to take public include Mahindra Susten, Mahindra Powerol, steel processor Mahindra Accelo, consultant company Bristlecone, Mahindra Electric Mobility, and Jawa motorcycle maker Classic Legends Pvt. Ltd. The combined revenue of these companies is Rs 10,000 crore, Shah said.
Loss-making units such as SsangYong Motors Co., American electric bike startup GenZe and Australian small aircraft maker GippsAero will be sold off, he said.