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M&M share falls 3% after subsidiary SsangYong Motor files for bankruptcy

BusinessToday.In     December 22, 2020

Mahindra & Mahindra share fell nearly 3% in early trade today after the automaker's South Korean arm Ssangyong Motor Co (SYMC), filed for bankruptcy in a Seoul court on Monday. The auto stock touched an intraday low of Rs 667.1, down 2.78% against previous close of Rs 686.20 on BSE.

The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. The share has gained 30.28% since the beginning of this year and risen 30.44% % during the last one year.

At 1:50 pm, the share pared some losses and was trading 0.85% higher at Rs 692.05 on BSE. Market cap of the firm rose to Rs 86,202 crore on BSE.

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SYMC has filed an application for commencement of rehabilitation procedure under the Debtor Rehabilitation and Bankruptcy Act of South Korea, M&M stated in its BSE filing. The company informed the bourses last week that its loss-making South Korean subsidiary had missed repayments of loans aggregating to around 60 billion KRW (South Korean won), or Rs 408 crore.

In another update, the Indian auto firm has decided to raise prices of its range of tractors, passenger and commercial vehicles from from next month in order to partially offset the impact of rise in input costs.

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