Khaitan & Co advised MSona Automotive Components in relation to a term facility of INR 120 crores from Avendus Finance to acquire a 37.5 per cent share held by Mahindra & Mahindra and other shareholders in Mahindra Sona.

This is one of the few transactions where an existing block of shareholders have given exit to another block of existing shareholders using debt financing.

Kumar Saurabh Singh (partner), Soumava Chatterjee (senior associate) and Krishnendu Sen (senior associate) represented the client on the transaction.

MSona is the holding company/special purpose vehicle formed by Gaurav Motwane and some of the other promoters of Mahindra Sona (a joint venture formed by the Sona Group and Mahindra & Mahindra), which is engaged in the business of manufacturing, selling and marketing of automotive components, including clutches and propeller shafts for SUVs and light commercial vehicles.