Mahindra & Mahindra (M&M) is making plans to divest a 3.2 percent stake (equivalent to 1.2 crore shares) in Mahindra CIE Automotive Ltd, a leading automotive component supplier. This announcement was made by reliable sources on May 23.
The block deal has a base size of Rs 521.2 crore, with the offer price range set between Rs 430 and Rs 452.85 per share.
Market analysts predict that the block deal in Mahindra CIE will likely be executed at a discount of 5-6 percent compared to the current market price (CMP). The brokerage firm Kotak Securities will be overseeing the deal.
Mahindra CIE Automotive is a subsidiary of the esteemed CIE Automotive Group based in Spain. As of March 2023, Mahindra & Mahindra holds a 3.19 percent stake in the company.
During the December quarter, the company experienced a significant year-on-year (YoY) growth in net profit, which tripled to Rs 195 crore. This growth was primarily attributed to strong operational performance and exceptional gain. In comparison to the same period last year, the company achieved a gain of Rs 37.87 crore, in contrast to an exceptional loss of Rs 12.8 crore.
The India business segment of Mahindra CIE witnessed a YoY growth of 21.7 percent, reaching Rs 1,407 crore in the same quarter. Additionally, its Europe business segment demonstrated remarkable growth of 43 percent, amounting to Rs 1,323.1 crore during the corresponding period.
About Mahindra & Mahindra (M&M):
Mahindra & Mahindra Limited is a renowned Indian multinational automotive manufacturing company based in Mumbai. Originally founded as Mahindra & Mohammed in 1945, the company later changed its name to Mahindra & Mahindra. As part of the esteemed Mahindra Group, M&M holds a prominent position as one of India’s largest vehicle manufacturers in terms of production capacity.
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