Mahindra & Mahindra share price tanked 7% to Rs 1,438 today after the company acquired a 3.53% stake in RBL Bank for Rs 417 crore and said that it may consider further investment in the bank. “We have acquired a 3.53 % stake in RBL Bank as an investment at a cost of Rs 417 Crores. We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9%,” said M&M.
Meanwhile, RBL Bank share price jumped 5% to Rs 251.20 today. The bank said that it was not aware of the stake purchase by Mahindra & Mahindra. “We being a listed company, for trading in the shares of the Bank there is no pre-approval required from the Bank except for the fact that as per the Master Direction – Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023, any shareholder who wishes to acquire 5% or more of the shareholding of the Bank is required to make an application to Reserve Bank of India to seek their prior approval for such acquisition. No such application has been received by us to date,” said RBL Bank in a stock exchange filing. The bank said that the holding of Mahindra & Mahindra as per the last beneficiary position as on July 21, 2023, as received from the depository (NSDL) is 3.53% of the total paid-up share capital of the bank.
Mahindra & Mahindra stock hit a 52-week high of Rs 1,594.85 on July 13, 2023, and a 52-week low of Rs 1,124 on March 28, 2023. The shares touched an intraday low of Rs 1,438 and a high of Rs 1,500. At the current price of Rs 1,455.45 per share, the company’s market capitalization stands at Rs 1.8 lakh crore. Meanwhile, RBL Bank shares hit a 52-week high of Rs 251.20 on July 27, 2023, and a 52-week low of Rs 91.10 on July 29, 2022. The stock hit an intraday high of Rs 251.20 and a low of Rs 233.85. At the current price of Rs 242.75 per share, the company’s market capitalization stands at Rs 14,566 crore.