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

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26 Aug, 2025 12:21

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A promoter group entity of Mahindra and Mahindra Ltd is weighing the sale of around 0.75 percent stake in the firm to raise around $215 million via a block deal, multiple people familiar with the development said.

"The block deal has been launched, and the offer price range is Rs 1911.5 per share to Rs 1970.65," said one of the people cited above, requesting anonymity.

According to the latest exchange data, M&M's promoter group collectively holds a 19.32 percent stake in the company. Prudential Management and Services Private Ltd, the promoter group entity that plans to pare its stake, owns 11.64 percent of the tractor and SUV maker.

"Kotak Mahindra Capital is the advisor. The proposed trade is at up to 3 percent discount to the last closing price," a second person added, also declining to be named.

Moneycontrol has reviewed a copy of the deal term sheet.

Kotak Mahindra Capital could not be reached for a comment immediately.

In a late evening disclosure to the stock exchanges after Moneycontrol's report on the proposed block deal by the promoter group entity, Mahindra & Mahindra shared the following response from Prudential Management and Services Private Ltd (PMSL):

“Post transmission of shares of PMSL held by the former Chairman of M&M, Late Mr. Keshub Mahindra (who passed away on 12th April, 2023), to his family members, the family is looking for liquidity for specific needs, and hence proposes 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.”

Keshub Mahindra joined the Mahindra Group in 1947 and became the Chairman in 1963, a post he held till 2012. During his 48 year tenure, the automobile manufacturing-focused Mahindra Group diversified into other sectors like IT, financial services and hospitality. He named nephew Anand Mahindra as his successor post retirement.

Also Read: Meet Keshub Mahindra - Anand Mahindra's uncle and India's oldest billionaire

(A previous version of this article was later updated with the official response of Prudential Management and Services Private Ltd)