A jubilant Welgama reiterated the fact that the spin off benefits as a result of M & M’s achievement in India will greatly benefit Sri Lanka, providing an impetus to the local automotive industry as well as serving to position Sri Lanka as a venue for many more automotive giants to open plants in the country.
Interestingly, Mahindra & Mahindra Ltd is now bigger than the Tata group’s carmaker Tata Motors, in terms of market capitalisation.
The heavyweight shares of Mahindra & Mahindra Ltd were among the top six gainers on BSE Sensex and the fifth-largest contributor in uplifting the benchmark index on Tuesday.
Shares of Mahindra & Mahindra Ltd rose as high as 2.23% to a lifetime peak of Rs 819.1 on Tuesday.
The stock of Mahindra & Mahindra Ltd opened 1.72% higher at Rs 815 in the early morning deals today on BSE.
Following the sharp surge in the share prices of Mahindra & Mahindra Ltd, the market capitalisation of the auto giant saw a rise of Rs 2,225 crore (approximately) to Rs 1,01,829 crore at the record high share price.
Mahindra & Mahindra Ltd held a market capitalisation of Rs 99,604.59 crore as per yesterday’s closing price of Rs 801.2 on BSE
With the breaching of the Rs 1 lakh crore mark in the market capitalisation, Mahindra & Mahindra Ltd went above Tata Motors in market capitalisation.
Notably, Mahindra & Mahindra Ltd became India’s second-largest automaker in terms of market capitalisation on Tuesday and was only behind Maruti Suzuki, as far as the automakers are concerned.
Other than Mahindra & Mahindra Ltd, the companies which recently joined the 1 lakh crore club are IndusInd Bank, Bajaj Finance and Asian Paints (in 2017).
On the contrary, a decline in the share prices of Tata Motors led the company to lose the Rs 1 lakh crore market cap club on Monday.
Tata Motors held a market capitalisation of Rs 97,866.68 on the basis of the closing price of Rs 338.95, as per the data available with the exchanges.
The market capitalisation of Tata Motors diminished further on Tuesday following a drop in share prices.
Tata Motors shares slipped as much as 1.73% to a day’s bottom of Rs 333.1 on BSE while the market capitalisation of company tripped to Rs 96,120 crore at the day’s low prices
“Mahindra will hold a 35% stake in the JV, while Ideal Motors will have a 65% stake.
Ideal Motors has been a trusted Mahindra distributor for the last 9 years, and with this joint venture Mahindra will strengthen its presence in the country.
The plant will be developed over the next one year under the expertise of the Mahindra team, and will incorporate global technologies”, said Mr Welgama.
Sri Lanka is one of Mahindra's top three export markets, and the new facility will not only contribute to human capital development, but will also enable collective development of local automotive components manufacturers to international standards under the global expertise of Mahindra.
“This is a leap forward for the Industry, adding value to the meaning of ‘Made in Sri Lanka’ and opening broader opportunities for national growth”.
