RBL Bank shares jump 2.5% today as Mahindra & Mahindra sells stake with 64% gain via block deal

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26 Aug, 2025 12:21

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RBL Bank shares gained as much as 2.5 percent on Thursday in the opening trade, after Mahindra & Mahindra (M&M) reportedly sold its entire 3.45 percent stake in the private sector lender through a block deal worth around Rs 678 crore, marking a complete exit from the bank a little over a year after its investment.

RBL Bank shares climbed to a high of Rs 332, against the previous close of Rs 323.85 on NSE in the early morning session. Multiple media reports said yesterday that M&M is set to sell its stake in RBL Bank via block deals, citing unidentified sources.

According to the data, about 2.11 crore RBL Bank shares -- representing 3.45 percent of the lender’s equity -- changed hands in the block deal window at Rs 321 per share. Kotak Securities acted as the broker for the transaction. Automobiles major M&M had invested Rs 417 crore in July 2023 to acquire a 3.5 percent stake in RBL Bank at Rs 197 per share. The sale, executed at Rs 321 a share, translates to a gain of roughly 64 percent on that investment.

At the time of the investment, M&M’s Managing Director and CEO Anish Shah had clarified that the company had no plans to increase its holding beyond the initial minority stake. “There is no intention of going further at this point. But it helps us understand the sector a lot better to enhance the value of a business that is nearly a Rs 40,000-crore market capitalisation,” Shah had said in August 2023.

The deal comes shortly after RBL Bank’s board approved a major strategic investment from Emirates NBD Bank PJSC, which agreed last month to invest up to Rs 26,853 crore (about $3 billion) for a 60 percent stake through a preferential allotment of new shares at Rs 280 apiece.

RBL Bank stock had ended Wednesday’s session about 1.9 percent lower. The stock, however, has delivered strong returns over time -- gaining 16.9 percent in the past month, mainly on Emirates NBD investment. RBL Bank shares have climbed 63.5 percent over six months, and have more than doubled so far this year.

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