Brazil’s Embraer to acquire 51 pc stake in Mahindra’s aerospace arm

New Delhi: Leading automobile firm Mahindra and Mahindra has said that Brazilian aerospace major Embraer S.A. will acquire a 51 per cent equity stake in its step-down arm, Novavayu Aerospace Ltd.

According to the company’s exchange filing, it has received intimation regarding execution of an Investment Agreement, pursuant to which Embraer will acquire a 51 per cent stake in NAL.

Consequent to the acquisition, NAL will cease to be a wholly owned subsidiary and will become an associate of Mahindra Defence Systems Ltd (MDSL), a step-down wholly owned subsidiary of the company.

Accordingly, NAL did not contribute any turnover, revenue, income, net worth or profits to consolidated financials for FY ended March 31, 2026 and has not generated any revenue or income as on date of disclosure, according to the company’s filing.

The firm further noted that the agreement has been made and transaction is expected to be completed on or before December 1.

In addition, MDSL will receive aggregate consideration of approximately Rs 5,10,000 for sale of 51 per cent equity stake to Embraer, it said.

The buyer is not related to the promoter, promoter group or group companies and the transaction does not fall within ambit of related party transactions.

"The proposed transaction for sale of shares does not fall within the ambit of related party transactions," the company said.

Shares of Mahindra & Mahindra on Friday ended at Rs 2,792.10 on the BSE, an increase of 0.8 per cent.

However, the stock remained under pressure across timeframes.

In one month, the stock declined 11.36 per cent. Over six months, it plunged 11.85 per cent.

Year-to-date, it tumbled 25.78 per cent and nearly 20 per cent in a year.

Moreover, the stock recorded a 52-week high of Rs 3,840 and a 52-week low of Rs 2,743.15 on the aforesaid exchange.

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