Mahindra & Mahindra (M&M) on Monday sold a 6.05% stake in auto component making company Mahindra CIE Automotive for Rs 821 crore. M&M’s stake in the company now stands at 3.19%, which is at its lowest level since the formation of the entity around 10 years ago.
M&M sold 22.98 million equity shares of the paid-up share capital of Mahindra CIE Automotive, a profit-making company. The sale price per share, which stood at 357.39, was much lower than its Monday closing price of359.65, after a fall of 8.61% compared with its Friday close. Spain’s CIE Automotive SA is the single-largest shareholder in Mahindra CIE Automotive with a share of 65.71% as of December 2022 end.
Mahindra Group had brought CIE Automotive on board almost 10 years ago before forming a single entity out of multiple M&M listed and unlisted entities which were housed under the umbrella brand, Mahindra Systech. Mahindra & Mahindra held around 20% stake in Mahindra Systech while CIE Automotive held 51% in the merged entity, which was named Mahindra CIE Automotive. Since then, M&M has been gradually selling its shares in this entity over the years.
In addition to Mahindra CIE Automotive, M&M sold stakes in Mahindra Susten, Mahindra Sanyo Special Steel and Mahindra First Choice Services and Peugeot Motorcycles (PMTC). In December 2022, the board of directors of CIE Automotive approved the strategic decision to discontinue forging activities in Germany and put it on the block.
