M&M pact for auto technology

Calcutta: Close on the heels of picking up a 16 per cent stake in Zoomcar for Rs 176 crore, domestic automobile major Mahindra and Mahindra (M&M) has zeroed in on another automotive technology firm, Carnot Technologies Private Limited.

M&M has signed an agreement to acquire 1,296 equity shares and subscribe up to 6,074 compulsory convertible cumulative preference shares, translating into a 22.9 per cent stake in the Mumbai-based Carnot. The cost of acquisition is estimated at Rs 6.06 crore.

Incorporated in August 2015, Carnot produces on-board diagnostic devices for cars under the CarSense brand to monitor the performance of vehicles and equipment. The early stage firm had recorded a turnover of Rs 1.2 crore for 2016-17.

"The acquisition of shares in Carnot is expected to support the company's businesses by developing information technology solutions for its products," M&M said in a statement to bourses.

The car maker had earlier said it was keen to invest in promoting sustainable mobility solutions.

The technology-driven automobile diagnostic equipment and software segment has been gradually growing with car makers looking to offer value-added services, especially on their premium offerings.

At Rs 708.45, the M&M scrip closed 0.08 per cent lower over its previous close on the BSE on Wednesday.

Mahindra India