Mahindra & Mahindra Sells Entire Stake in RBL Bank, Booking a 62.5% Gain on Investment

Mahindra & Mahindra Ltd (M&M), the leading Indian automotive conglomerate, has sold its entire 3.45% equity stake in RBL Bank through a block deal worth ₹682 crore. The shares were sold at a floor price of ₹317 each, reflecting a 2.1% discount to RBL Bank’s last market close.

The initial investment was made in July 2023 when M&M acquired this stake for ₹417 crore at ₹197 per share, resulting in an attractive return of approximately 62.5% within just over two years. This exit deal follows M&M’s earlier indications of not pursuing further stakes in RBL Bank, signaling a tactical approach to portfolio management.

Kotak Securities acted as the sole broker for this transaction. The sale is expected to impact RBL Bank’s shareholder structure and reflect the automaker’s focused strategy to understand and capitalize on the banking sector without long-term commitments.

This transaction underscores M&M’s ability to realize value from strategic investments and reassess asset allocations efficiently.

Key Highlights

M&M sells entire 3.45% stake in RBL Bank for ₹682 crore via block deal.

Deal price: ₹317/share; represents 2.1% discount to closing market price.

Initial investment: ₹417 crore in July 2023 at ₹197/share.

Returns: Approximately 62.5% gain within about two years.

Transaction executed through Kotak Securities as sole broker.

M&M confirms no plans for increased stake; focuses on strategic portfolio management.

Source: Economic Times, Business Standard, Moneycontrol, CNBC-TV18