M&M to sell 3.2% stake in Mahindra CIE automotive

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Auto major and promoter company Mahindra & Mahindra is likely to sell a 3.2 percent stake or 1.2 crore shares in the automotive component supplier Mahindra CIE Automotive Ltd via a block deal soon, sources told CNBC-TV18 on May 23.

The deal is expected to be at a discount of 5-6 percent to the current market price (CMP). Shares of Mahindra CIE closed 0.40 percent higher at Rs 453.20 apiece on the BSE on Tuesday compared to the previous closing.

Sources added that Kotak Securities is likely to be the broker for the deal.

In March, Mahindra & Mahindra had already offloaded a 6.05 percent equity representing 2,28,80,000 shares in Mahindra CIE Automotive through a block deal. The company sold shares at a gross price of Rs 357.39 per unit, which was nearly an 11% discount over the last close. Following the sale, the shareholding of Mahindra & Mahindra in Mahindra CIE Automotive decreased from 9.25% to 3.19%.

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

Revenue from operations increased to Rs 2,246.8 crore for the quarter under review compared to Rs 1,669.2 crore in the September-December period of the previous 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.