Mahindra & Mahindra Ltd., the automobile manufacture and a Nifty 50 constituent saw 1.1 crore shares or 0.9% of the total equity change hands in a block deal that took place on the exchanges on Thursday.
The total transaction value is worth ₹2,184 crore. Shares changed hands at a price of ₹1,924 per share.
The stake sale has been carried out by a group entity called Prudential Management and Services Pvt. Ltd. (PMSL)
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.
