Family members of Keshub Mahindra, former chairman Mahindra & Mahindra, will off load 0.75% stake in the tractor and SUV maker for a consideration of around Rs 1,850-1900 crore.
A promoter entity of M&M, Prudential Management and Services (PMSL), which held 11.64% stake in M&M as of December, 2023, will sell 9.3 million shares, according to a term sheet.
“Post transmission of shares of PMSL held by the former Chairman of M&M, Late Keshub Mahindra (who passed away on 12th April, 2023), to his family members, the family is looking for liquidity for specific needs, and hence proposes to sell a small number of shares held by PMSL in M&M,” M&M said in a statement sent to the BSE.
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PMSL is the single largest promoter entity of M&M holding 141.52 million shares in the company, which as per the stock closing on March 6, 2024, is worth Rs 27,861 crore.
“The family shall continue to retain the status of Promoter Group of M&M and there is no intention to sell further shares in the foreseeable future,” M&M further added.
PMSL was incorporated in 1982. M&M chairman Anand Mahindra and Uma Ranjit Malhotra, a trustee of Nanhi Kali, a non-governmental organisation that supports education for underprivileged girls in India, are on the board of PMSL.
M&M’s stock closed 1.53% higher on the BSE at Rs 1968.7 on March 6, 2024, which was higher than the Sensex rise of 0.55% on the same day.