Goldman sells M&M shares worth Rs 750 cr

The selling price was 4.51 per cent lower than M&M's previous day closing of 1,122.90 on the NSE

Investment banking giant Goldman Sachs unloaded on Wednesday seven million shares of tractor and utility vehicle maker Mahindra & Mahindra (M&M) for a little over Rs 753 crore through a block deal on the National Stock Exchange (NSE).

Golboot Holdings, the Cyprus-based entity controlled by Goldman, sold the shares, representing 1.14 per cent of M&M’s equity, at Rs 1,076.21 a share; the bank held 3.05 per cent in the Mumbai-based company as on March 31 last year. The selling price was about five per cent lower than M&M’s closing price of 1,122.90 on Tuesday on NSE.

The M&M stock on the exchange opened weak and closed about four per cent lower at Rs 1,081.65 on Wednesday. The company will announce its financial performance for the final quarter and year ended March 31 on May 30.

Goldman Sachs bought the M&M stake in 2008 for Rs 700 crore by converting its compulsorily convertible debentures.

Life Insurance Corporation is the largest institutional shareholder in M&M with 11.38 per cent. Institutional shareholders hold 26 per cent in the vehicle maker, higher than the promoter group’s stake of 25.3 per cent.