Mahindra & Mahindra Block Deal: Promoter group sells 0.9% equity worth ₹2,184 crore

CNBC-TV18 had reported exclusively on Wednesday evening that a promoter group entity of M&M plans to sell some stake via block deals on Thursday.

In response to CNBC-TV18's report, Mahindra & Mahindra clarified on Wednesday that the family's need for liquidity for specific needs is the reason behind the stake sale.

"Post transmission of shares of PMSL held by former M&M Chairman, Late Keshub Mahindra, 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 exchange filing said.

However, the company reiterated that PMSL will continue to retain the status of M&M's promoter group and that there is no intention to sell any further stake in the foreseeable future.

Based on the December quarter shareholding pattern, PMSL held a 11.64% stake in the company. All promoters and group entities combine hold 19.32% stake in M&M, based on the shareholding data.

Shares of Mahindra & Mahindra are down 3.5% on Thursday at ₹1,903. The stock has risen 47% over the last 12 months.