Firm Matters

Khaitan & Co advised Mahindra & Mahindra Ltd, a leader in automotive, farm, and services businesses on the sale and disposal of its Trucks and Buses Division (along with its employees, assets, intellectual property, licences, permits, insurance policies, contracts, rights and liabilities), to SML Mahindra Ltd, as a going concern on a slump sale basis, for a consideration of INR 525 crores, subject to working capital adjustments.

The Mahindra Truck and Bus Division generated revenue of approximately Rs 2,989 crores 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 slum 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.

The slum sale of Mahindra's Trucks and Buses division is in furtherance of and a strategic decision following Mahindra & Mahindra Ltd'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 Ltd.

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