M&M ends almost flat on Reva buy

MUMBAI: Paring the early rally today following its announcement to acquire a majority stake in electric carmaker Reva, the Mahindra & Mahindra counter settled up a paltry 0.64 per cent.

Shares of Mahindra & Mahindra (M&M) settled at Rs 519.45, a gain of just 0.64 per cent on the Bombay Stock Exchange. During the trade, the stock soared 4.33 per cent to touch an intra-day high of Rs 538.55 on a day when the 30-share Sensex ended with 2.3 per cent gains.

The country's largest SUV and tractor maker M&M today entered into an agreement to acquire 55.2 per cent equity stake in the Bangalore-based electric carmaker Reva by a combination of equity purchase from the promoters and infusion of fresh equity of over Rs 45 crore into Reva.

On the National Stock Exchange, the scrip settled at Rs 518, up 0.40 per cent. During the trading session, the stock climbed 4 per cent to touch a intra-day high of Rs 536.70.

After the buyout, the board of Mahindra Reva will be re-constituted under the chairmanship of its automotive & farm equipment sector president Pawan Goenka.