Mahindra & Mahindra’s Promoter Sells ₹2,184 Crore Stake in Block Deal

The automobile manufacturer, Mahindra & Mahindra Ltd promoter entity, sold a stake worth ₹2,184 crore through a block deal. At a price of ₹1,924 per share, the shares changed hands.

Mahindra & Mahindra Block Deal Details

The block deal of Mahindra & Mahindra involved the exchange of 1.1 crore shares, which is about 0.9% of the total equity of the company. The stake sale was conducted by Mahindra’s group entity, Prudential Management and Services Pvt Ltd (PMSL).

As per the exchange filing, Mahindra & Mahindra gave a statement on Wednesday, March 6, 2024, that the reason behind the stake sale is the family’s requirement for liquidity for specific needs. Hence, they proposed to sell a small part of the shares held by Prudential Management and Services Pvt Ltd in Mahindra & Mahindra.

However, the company restated that Prudential Management and Services Pvt Ltd will continue to maintain the status of Mahindra & Mahindra’s promoter group and that there is no intent to sell any more stake in the foreseeable future.

According to the shareholding pattern in the December quarter, Prudential Management and Services Pvt Ltd held an 11.64% stake in Mahindra & Mahindra. All promoters and group entities combined hold a 19.32% stake in the company.

On NSE, the shares of Mahindra & Mahindra closed at ₹1,970.65 on Wednesday, March 6, 2024. On Thursday, March 7, 2024, the share price of the company was down by about 4%, fluctuating at ₹1,892.05 around 11:49 AM. The stock has risen 52.77% over the last 12 months.

About Mahindra & Mahindra Ltd

Mahindra & Mahindra Ltd is one of the diversified automobile companies in India. The company has a presence across 4-wheelers, 3-wheelers, 2-wheelers, tractors, earthmovers and more. Mahindra & Mahindra Ltd is the flagship company of the Mahindra Group. The Group is spread across more than 100 countries in the world. Mahindra Group enjoys a leadership position in other businesses as well, such as utility vehicles, farm equipment, financial services and information technology in India. They are also present in agriculture, renewable energy, logistics, real estate and hospitality.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.