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Mahindra dismisses report of restructuring company into three verticals

Mahindra dismisses report of restructuring company into three verticals

The clarification comes after a news report mentioned that Mahindra’s roadmap for value unlocking and restructuring is almost ready.

Mahindra issues clarification on restructuring of company Mahindra issues clarification on restructuring of company

Mahindra and Mahindra on Wednesday rejected a media report that stated that the company is mulling restructuring into three verticals. “As there has been some speculation in the media, the Company on its own considers it necessary to clarify to the stock exchange that there are no plans to restructure the Company into 3 verticals,” said the company in a BSE filing.

“The Company has complied with and continues to comply with the relevant disclosure norms under the Listing Regulations. The Company has in the past been consistently disclosing many of its plans in its Press Release and Interactions during Earnings Call with Analysts and Media all of which has also been transparently disclosed to the Stock Exchanges. These include the following:

The Company is focused on fortifying its Core Businesses

Unlocking Value with Growth Gems and

Building new age digital platforms,” it added.

The clarification comes after a news report mentioned that Mahindra’s roadmap for value unlocking and restructuring is almost ready. It is likely to demerge three of its businesses of the group into one. 

The report stated that a new company is likely to be formed after the separation of the agriculture and farm business from the overall business. The Electrical Vehicle Mobility Solutions might also be separated as a different entity, considering the scope and growth in the segment. Businesses like insurance and used-car are likely to be phased out in a different entity along with new brands such as First Cry and Porter.

The report stated that the restructuring might take around 2-4 years, but the preparations have begun.

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Published on: Jan 19, 2022, 9:14 AM IST
Posted by: anwesha madhukalya, Jan 19, 2022, 9:08 AM IST