Shares of RBL Bank were in focus on Thursday, November 6, after a massive block deal worth Rs 678 crore took place during early trade. Around 2.11 crore shares, representing 3.45% of the bank’s equity, changed hands on the exchanges at Rs 321 per share.
The large transaction was executed in the block deal window, which is typically used for bulk institutional trades. While the details of the buyer and seller remain undisclosed, exchange data confirmed that the deal involved 3.45% equity of the private sector lender.
Mahindra & Mahindra’s reported exit
Earlier reports suggest that Mahindra & Mahindra (M&M) is selling its entire 3.45% stake in RBL Bank through this block deal, according to Bloomberg. The transaction is reportedly valued at Rs 682 crore, marking the automaker’s complete exit from the private lender after a little over a year of investment.
The floor price for the block deal was set at Rs 317 per share, representing a 2.1% discount to the bank’s previous closing price. An email sent to M&M seeking comments remained unanswered till the time of publishing.
The divestment has delivered substantial gains for M&M, as the automaker stands to make an impressive 64% return on its Rs 417 crore investment made in July 2023, when it acquired the stake at Rs 197 per share.
This is a developing story, and more details on the participants and transaction disclosures are awaited from the exchanges.
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