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Mahindra promoter group entity sells 0.8% stake for $215 million.

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Mahindra promoter group entity initiates sell of 0.8% stake for $215 mn

Mahindra & Mahindra’s promoter group entity, Prudential Management and Services Pvt Ltd, has initiated a sale of up to 9.3 million shares, representing 0.75% of the company’s stake, through block trades. The transaction is valued at ₹1777.7 crore ($215 million), with shares being offered at a price range of ₹1,911.5 to ₹1,970.65 apiece. Kotak Securities is overseeing the sale process.

As of December 31st, Mahindra’s promoters collectively held a 19.32% stake in the parent company, including Prudential Management’s 11.64% holding. Following the recent divestment, the promoter group’s holding is expected to fall to 18.57%, with Prudential Management’s ownership declining to 10.65%. The Mahindra stock has risen 55% year-to-date, ending at ₹1,970.65 on the BSE.

In the third quarter of FY24, Mahindra & Mahindra reported robust performance, with net profit climbing 61% year-on-year to ₹2,454 crore. Revenues grew 17% from a year earlier to ₹25,289 crore, indicating healthy profit margins and increasing sales.

The stake sale by promoters highlights investor confidence in the market’s upward trend and share prices. The Indian market’s capacity to accommodate substantial block trades has encouraged global investors to make profitable investments and exits in recent times. This move also signifies the continuous evolution and growth of the financial services sector in India.

Overall, the sale of shares by Prudential Management and Services Pvt Ltd reflects the dynamic nature of the market and the strategic decisions made by companies to capitalize on market opportunities. Investors and stakeholders will keenly watch the outcome of this transaction and its impact on Mahindra & Mahindra’s overall stakeholding and performance in the coming months.

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