Mahindra Systech, the component manufacturing division of Mahindra Group, has got approval from the senior management of the company to consolidate its companies and then get it listed, a senior director of Mahindra Group said.
"The plan always was to bring Mahindra companies under one roof and if you have listed companies like Mahindra Forging you can use it as a vehicle for putting everything else under one roof," said Hemant Luthra, president, Mahindra Systech . A formal board approval however is remaining.
Relative valuation of all the companies have been done by Ernst & Young. "We have put the companies together on paper for now and shown it to senior management. The plan has a strong approval of the senior management of the company but we have not taken it to other minority investors who have invested in our unlisted companies," said Luthra.
Luthra did not disclose the total valuation of the company, industry experts say the umbrella of such companies could be valued around $400 million (Rs 1,800 crore). No time line for the listing has been decided yet, it can only be done after minority stakeholders of the unlisted companies are taken in to confidence,said Luthra.