M&M promoter group entity initiates sale of shares; sale will reduce promoters’ stake to 18.57% from 19.32%
PMSL) has initiated a secondary sale of shares in the company as the “family is looking for liquidity for specific needs”, the automobile manufacturer said in a filing with the stock exchanges on Wednesday.
The company made the filing as a clarification to a news item on the sale of shares by its promoters.
“Post transmission of shares of PMSL 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 is looking for liquidity for specific needs, and hence proposes to sell a small number of shares held by PMSL in M&M,” the filing said. “The family shall continue to retain the status of the promoter group of M&M and there is no intention to sell further shares in the foreseeable future.”
According to the term sheet for the share sale, PMSL will sell 9.3 million shares, equivalent to 0.75% of the company's stake, through block trades. The shares are offered in a price range of Rs 1,911.50 to Rs 1,970.65 apiece. At the upper end of the price range, the proceeds could be up to Rs 1,832 crore.
Kotak Securities is overseeing the sale process.
Mahindra's promoters collectively held a 19.32% stake in the company as of December 31. This included PMSL’s 11.64% holding, show the company’s shareholding data. PMSL is a private financial services company.
After the share sale, the promoter group's holding is expected to come down to 18.57%.
Mahindra’s shares have risen 55% year-to-date, beating a 23% gain in the benchmark BSE Sensex. On Wednesday, the
