M&M shines on inking pact for hiving off the Naval System business division

Mahindra & Mahindra (M&M) is currently trading at Rs. 657.50, up by 8.40 points or 1.29% from its previous closing of Rs. 649.10 on the BSE.

The scrip opened at Rs. 653.00 and has touched a high and low of Rs. 658.35 and Rs. 650.25 respectively. So far 18929 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 874.75 on 28-Oct-2011 and a 52 week low of Rs. 617.00 on 20-Jun-2011.

Last one week high and low of the scrip stood at Rs. 662.80 and Rs. 636.20 respectively. The current market cap of the company is Rs. 40228.02 crore.

The promoters holding in the company stood at 25.26 % while Institutions and Non-Institutions held 47.21 % and 21.95 % respectively.

Automobile manufacturer Mahindra & Mahindra (M&M) has entered into a business transfer agreement to transfer the company’s Naval System business forming part of the company’s Naval Systems division together with congeries of rights of company in such business to a wholly owned subsidiary, Mahindra Defense Naval Systems, with effect from June 1, 2012, for a consideration based on Net Asset Value of the assets being transferred as on May 31, 2012.

The company had back in 2009, decided to transfer land systems business and Naval Systems business of Mahindra Defence Systems Division to separate corporate bodies or companies, in order to create more value.

Mahindra & Mahindra is the flagship company of the Mahindra Group.  Company’s core automotive and farm equipment businesses have grown into market leaders whose triple bottom line ethic is driving industry trends towards technological innovation, social responsibility, and constantly improving customer satisfaction.