Mahindra & Mahindra (NSE:M&M, BOM:500520) approved the transfer of its truck and bus division to subsidiary SML Mahindra (NSE:SMLMAH, BOM:505192) for 5.25 billion Indian on a slump sale basis.
The transaction will involve the transfer of the business undertaking, including employees, assets, intellectual property, contracts, licenses and liabilities, under a business transfer agreement expected to be executed by Aug. 7, according to an Indian bourse filing on Wednesday.
The proposed sale is expected to be completed by Jan. 31, 2027.
SML Mahindra jumped over 20% in after-market hours while Mahindra & Mahindra fell nearly 2%.