India conglomerate Mahindra open to reducing stakes in units

Mumbai

MAHINDRA Group, the US$18 billion conglomerate with businesses from India's largest SUV (sport utility vehicle) maker to financial services and farm equipment, is prepared to pare stakes in its publicly traded units to facilitate fundraising by the companies.

The group is open to cutting its shareholdings in six listed entities to less than 51 per cent, including Mahindra & Mahindra Financial Services Ltd, which has a market value of 210 billion rupees (S$4.4 billion) - if the strategy they're pursuing calls for it, said chief financial officer VS Parthasarathy in Mumbai. Mahindra will also encourage unlisted group companies to tap private equities for investment and list on stock exchanges.