Shares of Mahindra CIE declined as much as 6 percent on Monday after 2.45 crore shares or 6.5 percent of the company's total equity exchanged hands in a large deal.
The deal size is said to be worth Rs 892.6 crore. Shares exchanged hands at an average price of Rs 365 per share, which is a 7.4 percent discount to the stock's closing price on Friday.
Buyers and sellers in the transaction are not immediately known.
CNBC-TV18 had reported over the weekend that auto major Mahindra & Mahindra (M&M) Ltd is likely to sell a 4.6 percent stake in Mahindra CIE through block deals, citing people with knowledge of the matter.
The floor price for the proposed Rs 615 crore deal was fixed at Rs 355.
Now that the deal is complete, there would be a lock-in period of 60 days for the seller before any further sale takes place.
Mahindra CIE Automotive is a subsidiary of the CIE automotive group of Spain. Mahindra & Mahindra holds a 9.25 percent stake in the company as of December 2022.
Mahindra CIE Automotive's net profit for the December quarter tripled year-on-year to Rs 195 crore on strong operational performance and exceptional gain.
The company recorded a gain of Rs 37.87 crore for the quarter, compared to an exceptional loss of Rs 12.8 crore in the same period last year.
While the company’s India business grew 21.7 percent year-on-year to Rs 1,407 crore, its Europe business increased by 43 percent to Rs 1,323.1 crore during the same quarter.
Shares of Mahindra CIE are trading 5.2 percent lower at Rs 372.80.
First Published: Mar 12, 2023 2:40 PM IST
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