According to CNBC-TV 18, Mahindra & Mahindra is planning to sell a 4.6 percent interest in automotive component supplier Mahindra CIE Automotive Ltd. at a minimum price of Rs 355 per share.
According to the sources, the base amount of the block offer is anticipated to be Rs 615 crore, with a 60-day lockup period on future share sales.
On the BSE, Mahindra CIE shares finished 0.52 percent lower at Rs 394.25 a share on Friday (March 10). This indicates that the stake sale will occur at an almost 11% discount to the current market price.
M&M has already sold a 2.17 percent interest in Mahindra CIE for Rs 285 per share in September 2022. After the transaction, the company’s stake in MCIE decreased from 11.42 percent to 9.25 percent of its share capital.
During the quarter ending December 2022, Mahindra CIE reported a combined net loss of Rs 657.8 crore. In the previous fiscal year, the firm generated a combined net profit of Rs 80.2 crore.
Income from operations increased to Rs 2,246.8 crore in the current quarter, up from Rs 1,669.2 crore in the September-December period last year. The corporation operates on a January-December fiscal year.
The Pune-based company’s board of directors has also proposed a final dividend of Rs 2.5 per share of Rs 10 for the fiscal year ending December 31, 2022.