Eyeing tech sector expansion, Mahindra & Mahindra has announced to increase its stake in Carnot Technologies Pvt Ltd to 52.69% with an investment of around Rs 14 crore.
M&M currently holds 15.60% of the equity share capital of Carnot Technologies, which provides products and services related to internet-connected devices for monitoring the performance of vehicles and equipment, the company said in a regulatory filing.
The company will make a primary infusion of approximately Rs 2.5 crore for the subscription of 1,613 Series C CCCPS (cumulative compulsorily convertible preference shares) of Carnot of Rs 100 each at a premium of Rs 15,391.65 per CCCPS.
Further, it will have a secondary purchase for approximately Rs 11.5 crore of 7,423 equity shares of Rs 10 each at a premium of Rs 15,481.65 per equity share, the filing added.
On the reasons for the acquisition, M&M said, “Carnot is expected to support the company's strategy by developing information technology solutions for its products, customers and businesses.”
The transaction is expected to be completed by around March 31, 2022, and Carnot will become a subsidiary of M&M, the filing said.
