M&M said proceeds of the sale would be used for its various operational requirements
Mahindra & Mahindra shares gained 1.6 percent intraday on June 3 after promoter sold 1.54 percent stake in the company to Canada-based institutional investor.
The stock was quoting at Rs 656.95, up Rs 9.85, or 1.52 percent on the BSE, at 1206 hours IST.
Mahindra & Mahindra said M&M Benefit Trust sold 1.92 crore shares of the company, amounting to Rs 1,244 crore, on the Bombay Stock Exchange.
The buyer is CDPQ, an institutional investor that manages funds for several public and para-public organizations in Quebec, Canada, it added.
The company said proceeds of the sale would be used for its various operational requirements.
After this transaction, the M&M Benefit Trust will hold 8.44 crore shares, representing 6.8 percent of the equity capital of the company.
Mahindra's sales in May fell 3 percent year-on-year to 45,421 units despite new launches like XUV300, Alturas and Marazzo.Even tractor sales declined sharply by 16 percent to 24,704 units compared to year-ago due to high base and inventory. Tractor demand was lower than expected in May, the company said.
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