Mahindra & Mahindra Ltd has sold its entire 3.45% stake in RBL Bank Ltd for a total consideration of Rs 678 crore, marking a 62.5% gain on the investment it made in July 2023.
The company, in its exchange filing, stated that it had initially acquired a 3.53% stake in RBL Bank as a treasury investment at a cost of Rs 417 crore, which it has now fully divested.
The sale marks the automaker’s complete exit from the private sector lender, with Mahindra earning a substantial profit of over Rs 260 crore on the transaction.
Earlier reports suggested that Mahindra & Mahindra was offloading its stake via a block deal, with 2.11 crore shares, representing 3.45% equity, changing hands at Rs 321 per share for a total value of around Rs 678 crore. Details of the buyer remain undisclosed.
Following the sale, RBL Bank shares were up 1% in early trade, while Mahindra & Mahindra shares gained 1.22% to Rs 3,625 on the NSE.
The move comes a little over a year after Mahindra first picked up the minority stake in RBL Bank, at Rs 197 per share, signalling a timely and profitable exit.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
