India's Mahindra & Mahindra Financial Services Ltd., or Mahindra Finance, signed a deal to buy an up to 58.20% equity stake in Sri Lanka-based Ideal Finance Ltd. for a total investment of 2.00 billion Sri Lankan rupees.
The deal, approved by the Reserve Bank of India, is expected to close in March 2021, and Ideal Finance will become a subsidiary of Mahindra Finance upon completion of the deal, according to an Aug. 20 filing.
India-based Mahindra Finance is a nonbanking financial company focused on rural and semi-urban markets, while Ideal Finance is a registered nonbanking financial institution that is a wholly owned unit of Sri Lankan conglomerate Ideal Group.
As of Aug. 19, US$1 was equivalent to 177.39 Sri Lankan rupees.
