Mahindra promoter group entity initiates sale of 0.8% stake for $215 mn
MUMBAI : Mumbai: Prudential Management and Services Pvt Ltd, a subsidiary of Mahindra & Mahindra's promoter group, has initiated a sale of up to 9.3 million shares, representing 0.75% of the company's stake, through block trades, according to term sheet, reviewed by Mint. According to the company's term sheet, the transaction is valued at ₹1777.7 crore ($215 million), and the shares are 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, according to shareholding data from the exchanges. Established in Mumbai on 25 March, 1982, Prudential Management and Services is a private financial services company. 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%, according to a Mint analysis.
The Mahindra stock has risen 55% year-to-date, beating the 23% gains in the benchmark Sensex during the period. On Wednesday, the shares ended 1.6% higher at ₹1,970.65 on the BSE. In the third quarter of FY24, M&M reported robust performance, with net profit climbing 61% year-on-year to ₹2,454 crore, exceeding the analyst estimates of ₹2,375 crore polled by Bloomberg.
Its revenues grew 17% from a year earlier to ₹25,289 crore, hinting at healthy profit margins and increasing sales. The stake sale by promoters indicates that investors are to trying capitalize on the upward trend in the market and share prices. The Indian market's capacity to accommodate substantial block trades has instilled confidence in global investors to make
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