Mahindra shares worth Rs 1,424 crore picked up Canada’s CDPQ

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Mumbai | Updated: June 4, 2019 7:03:02 AM

CDPQ bought another 27.84 lakh shares of M&M at the same price from M&M Employees Welfare funds, according to the BSE. Shares of M&M ended Monday’s trading session up 1.05%, at `653.90 a piece.

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Canada’s CDPQ, an institutional investor that manages funds for several public and para-public organisations, has invested `1,424.56 crore in Mahindra & Mahindra (M&M) by picking up stakes in the auto company from M&M Benefit Trust as well as M&M Employees Funds, marking the former’s first investment in the Mahindra Group.
Mahindra & Mahindra Benefit Trust on Monday sold 1.92 crore shares of M&M, amounting to `1,244 crore to CDPQ, according to a stock exchange notification released on Monday by the company.

“The shares held by the trust were the outcome of various mergers and schemes of amalgamation. The trust held 10.36 crore shares of M&M. According to the trust deed, the proceeds of the sale would be transferred to M&M, which would be used by the company for its various operational requirements,” the company said.

After Monday’s transaction, the M&M Benefit Trust will hold 8.44 crore shares, representing 6.8% of the equity capital of the company. “The sale has been executed at a gross price of `648 per share. Following the sale, the shareholding of the promoters and promoter group of the company has come down from 20.44% to 18.90% of the total paid-up equity share capital of the company,” M&M said in a stock exchange filing.

CDPQ bought another 27.84 lakh shares of M&M at the same price from M&M Employees Welfare funds, according to the BSE. Shares of M&M ended Monday’s trading session up 1.05%, at `653.90 a piece.

Mahindra Group chief financial officer VS Parthasarathy said since the benefit trust holds M&M shares for the benefit of its shareholders, it had decided to monetise part of the holding by divesting to a long-term, high-quality investor. “This is the first investment by CDPQ in the Mahindra Group reposing their faith in the future prospects of the company and Indian economy in general.”

CDPQ is an institutional investor that manages funds for several public and para-public organisations, mainly pension and insurance plans, in Quebec, Canada. Created in 1965, CDPQ manages more than C$309.5 billion, with investments in 60 countries.

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