M&M dilutes stake in Mahindra CIEM&M - 1263 Change: 3.25 (0.26 %)
In a regulatory exchange filing, M&M informed exchanges about selling 82,42,444 equity shares representing 2.173% of the paid-up share capital of Mahindra CIE Automotive.
The sale has been executed on the stock exchange(s) through the bulk deal window (with co-promoter i.e. CIE group), at a gross price of Rs 285/share with total funds inflow pegged at Rs 235 crore. Following the sale, the shareholding of M&M in MCIE will come down from 11.4% to 9.3% with consequent CIE group stake now increased from 63.4% to 65.6%. We believe the proceeds from this stake sale will partly fund M&M’s acquisition of 17.4% stake in Swaraj Engines as announced by the company in the past week (amounting to Rs 296 crore).