Mumbai: India’s Mahindra & Mahindra (M&M) will launch an open offer on 6 April to buy an additional 20% stake in micro-irrigation firm EPC Industrie, a notice on Thursday showed.
Mahindra is buying a 38% stake in EPC for Rs269 million ($6 million), and is launching the open offer as per the Indian capital market rules.
The offer price has been set at Rs66.55 per share, said the offer manager in the newspaper advertisement on Thursday. That is higher than Rs66.10 a share Mahindra is paying for the 38% stake. The offer closes on 25 April.
Shares in EPC had closed at Rs64.15 on Wednesday.
Mahindra, India’s largest utility vehicles maker, reported a 79% jump in quarterly profit as robust volumes in a fast-growing auto market mitigated higher raw material costs.
Mahindra said that the acquisition of EPC was part of its diversification strategy in the agricultural business.