Mahindra & Mahindra (M&M) has sold its entire stake in its Turkey-based industrial manufacturing subsidiary Erkunt Foundry to a consortium led by Hisarler Makina Sanayi. M&M told the stock market that its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) Limited and its subsidiary Erkunt Tractor have entered into a share purchase agreement (SPA) in this regard on April 10, 2026. These companies have agreed to sell their entire 99.04 per cent stake in Erkunt Sanai Anonyme Sirketi (Erkunt Foundry) to a consortium led by Hisarlar Makina Sanai. Mahindra said this decision to exit the foundry business is in line with the company’s capital allocation structure.
Stake sold to this company
Mahindra & Mahindra on Friday said it has sold its shareholding in Erkunt Foundry, a step-down subsidiary in the industrial manufacturing sector, to a consortium led by Hisarlar Makina Sanayi. Mahindra & Mahindra (M&M) said in a regulatory filing that the company’s wholly-owned subsidiary, Mahindra Overseas Investment Company (Mauritius) Ltd (MOICML), together with its wholly-owned subsidiary, Erkunt Traktor Sanayii Anonim Sirketi (Erkunt Traktor) have entered into a stock purchase agreement with a consortium led by Hisarlar Makina Sanayi on April 10, 2026. (SPA) is done.
how many deals were done
The filing further said that under the SPA, MOICML and Erkunt Traktor have agreed to sell their entire stake in Erkunt Sanayi Anonim Sirketi (Erkunt Foundry) – which is 99.04 per cent of the total shareholding – to the consortium of Hisarlar Makina Sanayi ve Ticaret AS, Oguzhan Sahinkaya and Bunyamin Sarioglu. M&M said that the exit from the foundry business is in line with the company’s capital allocation framework. The filing said, “The return to MOICML and Erkunt Traktor will be Rs 1,00,000 Turkish Lira (approximately Rs 2,13,000 at the current foreign currency exchange rate) after MOICML invests Rs 1.2 billion Turkish Lira (Rs 256 crore at the current foreign currency exchange rate – to repay external debt and fund the business till the completion of the transaction).
The process was already going on
M&M’s exit from the foundry business in Turkey is part of the actions initiated in Q3 as part of a broader portfolio review process, and is therefore a continuation of actions already underway. Hisarlar is an established engineering/manufacturing company with a track record of over 50 years and strong associations with European OEMs. It has the ability to invest in the business and grow it sustainably. The deal will have no impact on M&M’s tractor business in Türkiye, which will continue to operate as part of the Mahindra Group.