Mahindra & Mahindra to dispose of 4.6% ownership in Mahindra CIE in a block deal
- ByStartupStory | March 13, 2023
Mahindra & Mahindra, the automotive giant, is expected to offload a 4.6% stake in Mahindra CIE Automotive Ltd, a supplier of automotive components, with a minimum price of Rs 355 per share.
Sources suggest that the block deal’s minimum value is expected to be Rs 615 crore, and there may be a 60-day lock-up period imposed on any subsequent share sales.
In September 2022, Mahindra & Mahindra divested a 2.17% stake in Mahindra CIE at Rs 285 per share, resulting in a decrease in its share capital from 11.42% to 9.25%.
For the quarter ending December 2022, Mahindra CIE reported a consolidated net loss of Rs 657.8 crore, compared to a consolidated net profit of Rs 80.2 crore in the same period of the previous year.
Mahindra CIE’s revenue from operations increased to Rs 2,246.8 crore for the current quarter, as compared to Rs 1,669.2 crore in the corresponding period of the previous year. It is worth noting that the company follows a financial year starting in January and ending in December.
In addition, the board of the Pune-based company has proposed a final dividend of Rs 2.5 per share of Rs 10 each for the financial year that concluded on December 31, 2022.
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