The RBL share price jumped over 2% in early trade. This is after Mahindra & Mahindra sold its entire 3.53% stake in RBL Bank for Rs 678 crore. The sale represents a 62.5% gain on M&M’s initial investment. The company had acquired the stake as a treasury investment in July 2023 for Rs 417 crore. The M&M shares are trading .15% higher.
“We refer to our letter dated July 26 2023, wherein the Company has informed about acquisition of 3.53% stake in RBL Bank as a treasury investment at a cost of Rs. 417 Crores. In furtherance to above, we would like to inform you that the Company has today sold its entire stake in RBL Bank for a consideration of Rs. 678 Crores representing a 62.5% gain on the investment,” the company stated in a BSE filing.
At the time of the acquisition, CEO Anish Shah said the move was aimed at gaining deeper insights into the banking sector over a seven- to 10-year period and would be maintained unless a strategic opportunity emerged.
RBL Bank: Open offer by Emirates NBD Bank
The deal follows an announcement by RBL Bank on November 5 approving strategic investment by Emirates NBD Bank. The board approved the issue and allotment, by way of a preferential issue of up to 95.90 crore fully paid-up equity shares of the RBL Bank, each having a face value of Rs 10, which is equivalent to 60 per cent of the post-preferential equity share capital for Rs 280 per unit aggregating to Rs 26,853 crore to NBD Bank.
The preferential issue has triggered an obligation on NBD Bank to make an open offer to the shareholders of the RBL Bank in terms of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations.
RBL Bank on Wednesday said an open offer by Emirates NBD Bank will commence from December 12 to acquire up to 26 per cent of shares from the public. The period for tendering of public shares will close on December 26, RBL Bank said in a regulatory filing.
Last month, Emirates NBD Bank, the second largest in the UAE, announced a plan to acquire a majority 60 per cent stake in RBL Bank for Rs 26,853 crore, the biggest-ever financial sector deal in value terms.
The acquisition plan of Emirates NBD Bank to hold a controlling stake in RBL Bank through an infusion of approximately $3 billion (about Rs 26,850 crore) marks the largest-ever foreign direct investment in India’s financial services sector.
RBL Bank Q2FY26
RBL Bank reported its Q2FY26 results on Wednesday, November 5. The bank posted a 16% rise in its net profit to Rs 160 crore. Its total income increased to Rs 1,458 crore during the quarter. The bank earned an interest income of Rs 1,109 crore, while net interest income (NII) improved to Rs 424 crore from Rs 367 crore in Q2FY25.
Mahindra & Mahindra Q2FY26
Mahindra & Mahindra reported its Q2FY26 results on Tuesday, November 4. The company posted a 15.85% year-on-year (YoY) rise in its consolidated net profit to Rs 3,673 crore. Revenue from operations stood at Rs 45,885.40 crore, up 21.75% from Rs 37,689.04 crore recorded in Q2FY25.
Mahindra & Mahindra’s consolidated profit after tax rose 28% year-on-year, excluding the one-time gain from a land sale in Q2FY25, as well as the tax impact related to SML Isuzu and prior period PLI benefits in Q2FY26.
Mahindra & Mahindra, RBL share price
Share price of Mahindra & Mahindra has seen a significant gain in past few months. It has increased 18.56% so far this year. The RBL share price has increased 107.54% so far this year.
