M&M block deal | Shares worth Rs 2,184 crore change hands; promoter likely seller

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Mahindra and Mahindra shares declined over 4 percent to Rs 1,884 after a block deal involving 1.1 crore shares, or a 0.9 percent, stake in the automobile major changed hand on March 7.

The stake sale was done at a floor price of Rs 1,924 apiece, taking the transaction value to Rs 2,184 crore.

Moneycontrol reported on March 6 that Prudential Management and Services Private (PMSP) Ltd, the promoter group entity, was mulling the sale of around 0.75 percent stake in the firm to raise around $215 million via a block deal.

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Exchange data shows that M&M's promoter group collectively holds a 19.32 percent stake in the company. PMSP owns 11.64 percent in the tractor and SUV maker.

Also read: Exclusive: M&M promoter entity looking to sell stake worth $215 mn via block deal

Reacting to Moneycontrol's report, Mahindra & Mahindra said that after transmission of PMSL shares held by the former M&M chairman, Keshub Mahindra, who passed away on April 12, 2023, to his family, the family was looking for liquidity for specific needs, and proposed to sell a small number of shares held by PMSL in M&M. "The family shall continue to retain the status of Promoter Group of M&M and there is no intention to sell further shares in the foreseeable future," it said.

After the transaction, the promoter would have a lock-up for 90 days before the next sale.

In the December quarter, the company announced a 60 percent increase in net profit on-year to Rs 2,454 crore on the back of strong performance of the automotive segment, coupled with a favorable product mix and the benefits of operating leverage.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.