Mahindra & Mahindra (M&M) has signed up a term sheet with Kinetic Motors, the Pune-based two-wheeler maker, for buying majority stake in the company.

A term sheet is a non-binding deal that frames the necessary terms and conditions under which an investment is to be made in a company.

It is learnt that M&M will pay Rs 1.20 billion to Kinetic Motors for purchasing its 76% stake.

The company is doing due diligence and a deal could fructify within the next two months.

Presently, though, there are no PE players in the race to invest in Kinetic Motors. M&M is one of India’s leading makers of general-purpose utility vehicles, light commercial vehicles, tractors and SUVs. Kinetic Motors has presence in both motorcycles and scooters.

The officials from both the companies declined to comment on the news.

Sulajja Firodia Motwani, MD, Kinetic Motors, stated, “This is completely speculative and I would not like to comment on it.”

A representative from M&M said, “I wish to reiterate that as a company policy, we do not comment on speculative stories.”

M&M is quite keen on entering the gearless scooter sector in India that is exhibiting brilliant growth. Kinetic Motors has a noteworthy presence in the gearless two-wheeler segment and owns brands such as Zoom, Nova, Zingo80 and its latest offering, Kinetic Flyte.