Mahindra Finance to acquire 20% stake in MIBL for ~Rs206.39 crore

21 Oct 2022 , 03:36 PM

Mahindra & Mahindra Financial Services Limited (Mahindra Finance) announced today that it has agreed to purchase fully paid-up equity shares of Mahindra Insurance Brokers Limited (MIBL) held by Inclusion Resources Pvt. Ltd. (IRPL).

The company will acquire 20,61,856 shares at a price of Rs1,001 per share, representing a 20% equity stake in MIBL. The total cost of acquisition for the company is Rs206.39 crore (approx.).

In this regard, Mahindra Finance, MIBL, and IRPL have signed a share purchase agreement.

"The collaboration between MIBL, IRPL, and Mahindra Finance has been equally beneficial to all parties. IRPL has been a valuable partner for us, and I'd want to note the assistance we've received from IRPL and its nomination director on the MIBL Board. MIBL has created a robust retail broking business over the years, has been continuously profitable, and has added up to 2 million consumers every year,” commented Ramesh Iyer, Vice Chairman & Managing Director, of Mahindra Finance.

The transaction is still subject to IRDAI and other regulatory clearances. MIBL will become a wholly-owned subsidiary of Mahindra Finance upon the conclusion of this purchase.

On Fridday, Mahindra Finance ended 2.97% lower at Rs205.95, against its previous closing of Rs212.25 on the BSE.

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