M&M promoter group entity initiates sale of shares; sale will reduce promoters’ stake to 18.57% from 19.32%

Mumbai: Mahindra & Mahindra’s promoter group entity Prudential Management and Services Pvt Ltd (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 shares ended 1.6% higher at Rs 1,970.65 on the BSE.

In the third quarter of FY24, M&M’s net profit jumped 61% year-on-year to Rs 2,454 crore, exceeding the average estimate of Rs 2,375 crore in an analyst poll by Bloomberg. Revenue grew 17% to Rs 25,289 crore.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – todayschronic.com. The content will be deleted within 24 hours.

Leave a Comment