Mahindra & Mahindra confirmed its Last Mile Mobility electric three-wheeler business remains on track for an IPO in H2 2027. Simultaneously, it merged its Truck and Bus Division into SML Mahindra via a slump sale set for completion in FY27, retaining 59% of the combined entity. Group CEO Anish Shah described the move as part of a 'platform over exit' strategy, aiming to build scalable, listed businesses. Executive Rajesh Jejurikar noted the integration will enhance competitiveness against Tata Motors and Ashok Leyland. The company already operates multiple listed subsidiaries, including Mahindra Logistics and Mahindra Holidays.
According to www.thehindubusinessline.com, Mahindra & Mahindra has reaffirmed that its Last Mile Mobility business — focused on electric three-wheelers — remains on track for an initial public offering in the second half of calendar year 2027.
Platform Strategy Over Divestment
The company announced on July 29, 2026 that its Truck and Bus Division would be merged into SML Mahindra via a slump-sale transaction expected to close during fiscal year FY27. Under the deal, Mahindra & Mahindra will retain approximately 59 per cent of the combined entity, consolidating its commercial vehicle operations under a single listed platform.
Group CEO and Managing Director Anish Shah emphasized that the decision reflects a deliberate shift away from asset monetization toward building scalable, listed businesses. He noted that while investors had previously urged Mahindra to sell its truck and bus business outright, the company instead chose to restructure and strengthen it first. “Three or four years ago, many would have asked why we didn’t simply sell the truck business. The team did a great job getting the business to perform. Today we have the opportunity to combine it with SML at what we believe is a fair value and create a much bigger platform,” Anish Shah said.
Strategic Integration Targets Scale and Competition
Executive Director and CEO (Auto & Farm Sector) Rajesh Jejurikar stated the merger aims to fuse Mahindra’s engineering, manufacturing, and sourcing capabilities with SML Mahindra’s established presence in trucks and buses. The integration is intended to generate the scale required to compete more effectively against industry leaders including Tata Motors and Ashok Leyland.
“The idea is to create a platform that can start challenging some of the larger players in the industry,” Rajesh Jejurikar explained. The consolidated entity will serve as Mahindra Group’s dedicated commercial vehicle platform — a role previously fragmented across unlisted divisions.
IPO Roadmap Unchanged; Broader Capital Strategy Emerges
Shah confirmed that the Last Mile Mobility IPO timeline remains intact for H2 2027, reinforcing the group’s prioritization of organic scaling before listing. When asked about potential listings for other units — such as aerostructures — he clarified that Mahindra’s focus is not on listing per se, but on building businesses to scale: “We are not too focused on listing itself. We are focused more on building businesses to scale, and as we do that, they will automatically list at some point.”
This approach aligns with Mahindra’s existing portfolio of separately listed subsidiaries, including Mahindra Lifespace Developers, Mahindra Logistics, and Mahindra Holidays. With SML Mahindra now designated as the group’s commercial vehicle platform and Last Mile Mobility positioned next in line for listing, Mahindra is executing a capital-allocation strategy centered on creating focused, strategically controlled listed entities rather than pursuing outright divestitures.
Contextual Industry Positioning
This dual-track strategy — simultaneous consolidation and selective IPO preparation — mirrors broader trends among diversified Indian conglomerates seeking greater market transparency and valuation discipline. Tata Motors, for example, has pursued similar structural clarity by separating its electric vehicle initiatives into Tata Passenger Electric Mobility Ltd., which filed for IPO in early 2024. Meanwhile, Ashok Leyland has expanded its electric commercial vehicle footprint through joint ventures and capacity upgrades in India, including investments totaling over ₹1,200 crore since 2022.
For supply chain professionals, the move signals increasing vertical integration within last-mile and medium-haul logistics ecosystems — particularly as OEMs like Mahindra invest directly in fleet electrification, charging infrastructure, and financing models tailored to small fleet operators and gig economy partners across urban and semi-urban India. The 59 per cent retained stake ensures strategic oversight while enabling access to public capital for targeted growth initiatives.
Source: thehindubusinessline.com
Compiled from international media by the SCI.AI editorial team.
