M&M rises upon making a strategic acquisition in Carnot Technologies

M&M rises upon making a strategic acquisition in Carnot Technologies

by 5paisa Research Team Last Updated: 2022-03-17T11:57:38+05:30

Carnot Technologies is an agri-tech company that powers farming decisions using data science.  

Mahindra & Mahindra Ltd, one of the leading auto companies in India with a leadership position in utility vehicles, has inked a Share Purchase Agreement and a Share Subscription and Shareholders Agreement with Carnot Technologies Private Limited.

The latter is currently an associate of M&M, which owns a 15.60% equity stake. Upon completion of the acquisition process, Carnot shall become a subsidiary of M&M, which shall hold a 52.69% equity stake in the agri-tech company.

About Carnot Technologies Private Limited:

Established in August 2015, Carnot Technologies is an agri-tech company that powers farming decisions using data science. It is engaged in the business of research, development, manufacturing and retail of products and providing services in the field of information technology and technology-enabled applications in different fields.

The company’s flagship products are the Simha Telematics & KrishiDiary.

Simha Telematics comprises an advanced IoT device that can be retrofit onto any tractor or harvester & pairs with the Simha app to provide various features such as fuel monitoring & management and efficient billing via area/time /distance calculation.

KrishiDiary is a farm diary app that enables farmers to keep track of all expenses and work done on their farm and calculate their costs. It also helps with tailor-made agronomy advice from experts. Apart from this, the app also provides farmers with valuable information such as Mandi Bazaar rate and lets them schedule farm work reminders.

The acquisition will be done at a cash consideration of approximately Rs 14 crore, of which, nearly Rs 2.5 crore will be invested by way of primary infusion. Further, the company will make a secondary purchase of approximately Rs 11.5 crore.

Given that M&M has business interests in farm equipment segment, wherein it sells tractors, spare parts and related services, this acquisition is expected to support the company’s strategy by developing information technology solutions for its products, customers and businesses.

At 11.50 am, the shares of Mahindra & Mahindra Ltd were trading at Rs 786.75, an increase of 1.74% from the previous day’s closing price of Rs 773.30 on BSE.


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