Mahindra & Mahindra Share Price in Focus; To Exit Erkunt Foundry Business Via Stake Sale

 Mahindra & Mahindra Limited has announced its decision to exit the foundry business in Turkey through the divestment of its entire stake in Erkunt Sanayi Anonim Şirketi, also known as Erkunt Foundry. The move aligns with the company’s broader capital allocation framework and portfolio optimisation strategy. 

Entire Stake to Be Divested in Turkish Subsidiary 

Mahindra’s wholly owned overseas arm, Mahindra Overseas Investment Company (Mauritius) Limited, along with its subsidiary Erkunt Traktör, has entered into a stock purchase agreement to sell their combined 99.04% stake in Erkunt Foundry to Turkish buyers. 

Upon completion of the transaction, Erkunt Foundry will cease to be a step-down subsidiary of Mahindra & Mahindra. 

Strategic Exit in Line with Capital Allocation Framework 

The company stated that the divestment is consistent with its disciplined capital allocation approach, under which it continues to evaluate businesses based on strategic fit and return potential. 

The exit from the foundry business is aimed at streamlining the group’s portfolio and reallocating capital towards core and higher-return segments. 

Financial Details of the Transaction 

As part of the transaction structure, Mahindra will infuse Turkish Lira 1.2 billion into the business before closure for extinguishing external debt and funding operational requirements until the deal closes. 

Post this infusion, the company will receive consideration of Turkish Lira 100,000 from the buyers for the stake sale. The transaction is expected to be completed by July 30, 2026.  

For context, Erkunt Foundry contributed approximately ₹771.69 crore to Mahindra’s consolidated turnover in FY25, accounting for around 0.49% of consolidated revenue. 

Read More: Indian Auto Industry Expected to Record 3–6% Volume Growth in FY2026–27, Says ICRA! 

Mahindra Share Price Performance 

As of 10 April 2026, at 3:30 PM, Mahindra & Mahindra share price is closed at ₹3,266 per share, reflecting a surge of 3.66% from the previous closing price. 

Conclusion 

Mahindra’s exit from Erkunt Foundry reflects its continued focus on disciplined capital deployment and strategic portfolio rationalisation across international operations. 

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