Mahindra Promoter To Sell Stake In Block Deal, Raising $215 Mn

7 Mar 2024 , 09:19 AM

A promoter entity associated with Mahindra and Mahindra Ltd is considering selling approximately 0.75% of its stake in the company through a block deal, aiming to raise approximately $215 million, as disclosed by sources familiar with the matter.

“The block deal has been initiated, with the offering price ranging between ₹1911.5 per share and ₹1970.65,” one of the sources, who preferred to remain anonymous, revealed.

According to the latest exchange records, the promoter group of M&M collectively owns 19.32% of the company. Prudential Management and Services Private Ltd, the promoter entity intending to reduce its stake, currently holds 11.64% of the company, which manufactures tractors and SUVs.

“Kotak Mahindra Capital is advising on the transaction. The proposed deal is set at a discount of up to 3% from the last closing price,” another source, also choosing not to disclose their identity, commented.

In a disclosure made to the stock exchanges regarding the proposed block deal by the promoter entity, Mahindra & Mahindra shared a statement from Prudential Management and Services Private Ltd (PMSL):

“After the transfer of shares of PMSL previously held by the former Chairman of M&M, Late Mr. Keshub Mahindra (who passed away on 12th April, 2023), to his family members, the family seeks liquidity for specific needs. Hence, they propose to sell a portion of the shares held by PMSL in M&M. The family intends to maintain its status as a Promoter Group of M&M and has no plans to sell further shares in the foreseeable future.”

Keshub Mahindra, who joined the Mahindra Group in 1947 and served as Chairman from 1963 to 2012, led the company’s diversification into sectors such as IT, financial services, and hospitality during his 48-year tenure. He designated his nephew, Anand Mahindra, as his successor upon retirement.