M&M to sell off 4.6% stake in Mahindra CIE through block deal

Shares of Mahindra CIE closed 0.52 percent lower at Rs 394.25 a piece on BSE on Friday (March 10) (Representative image: Reuters)

Auto major Mahindra & Mahindra is likely to sell 4.6 percent stake in automotive component supplier Mahindra CIE Automotive Ltd at a floor price of Rs 355 per share, sources told CNBC-TV 18.

The base size of the block deal is likely to be at Rs 615 crore with a 60-day lock up period on further sale of shares, the sources added.

Shares of Mahindra CIE closed 0.52 percent lower at Rs 394.25 a piece on BSE on Friday (March 10). This means the stake sale will take place at a nearly 11 percent discount from current market price.

Earlier in September 2022, M&M had sold a 2.17 percent stake in Mahindra CIE for Rs 285 per share. Following the sale, the shareholding of the company in MCIE came down from 11.42 percent to 9.25 percent of its share capital.

Mahindra CIE posted a consolidated net loss of Rs 657.8 crore for the quarter ended December 2022. The company had reported a consolidated net profit of Rs 80.2 crore in the year-ago period.

Revenue from operations rose to Rs 2,246.8 crore for the quarter under review compared with Rs 1,669.2 crore in the September-December period of last year. The company follows a January-December financial year.

The board of the Pune-based firm has also recommended a final dividend of Rs 2.5 per share of Rs 10 each for the financial year ending December 31, 2022.