A Canada based associate firm of Mahindra and Mahindra has dissolved. The auto giant held an 11.18 per cent stake in the Resson Aerospace Corporation.
"Resson has received a Certificate of Dissolution from Corporations Canada dated September 20, 2023, which was informed to the company," Mahindra & Mahindra (M&M) said in a regulatory filing.
"Upon liquidation of Resson, the company is entitled to receive approximately 4.7 million Canadian Dollars (equivalent to ₹ 28.7 crore) as distribution of proceeds towards Class C Preferred Shares held by the company," M&M said.
Shares of M&M were trading 1.93 per cent down at ₹ 1,602.55 apiece on the BSE.
The dissolution comes at a time when relations between India and Canada are at a boil. However, the reasons for the move aren't clear, and Mahindra & Mahindra hasn't issued any statement on the same.
M&M and Resson Aerospace inked a contract in 2018 for M&M to purchase up to 10 per cent of the company's share capital for up to 6.63 million Canadian dollars to be paid in cash.
Mahindra and Mahindra is entitled to receive around 4.7 million Canadian Dollars, which is equivalent to Rs 28.7 crores, as distribution of Class C shares held by the firm.
In the meantime, M&M's market value surpassed Rs 2 lakh crore on 18 September, thanks to a robust order book in the SUV category and a dominant position in the tractor segment.
The market value of the automaker increased from Rs 1 lakh crore in April 2022 to over Rs 2 lakh crore this week, more than doubling in less than one and a half years.