M&M shares jump 4 pc on Reva stake buy

MUMBAI: Shares of Mahindra & Mahindra jumped 4.33 per cent on the BSE on Wednesday, after the company announced that it will acquire a majority stake in electric car maker Reva. (Watch)

After a firm opening on the Bombay Stock Exchange, Mahindra & Mahindra (M&M) climbed 4.33 per cent to touch a high of Rs 538.55.

Later, the scrip was quoting at Rs 528.60, higher by 2.41 per cent.

The company today entered into an agreement to acquire 55.2 per cent equity stake in electric carmaker Reva by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crore into the company.

On the National Stock Exchange M&M shares surged to a high of Rs 536.70, up 4 per cent.

Mahindra & Mahindra will rename Reva as Mahindra Reva Electric Vehicle Company (Mahindra Reva).

After the buyout, the board of Mahindra Reva will be re-constituted under the chairmanship of Pawan Goenka, President Automotive & Farm Equipment Sector, Mahindra & Mahindra.

Reva markets its product in 24 countries.