M&M accelerates after LIC sells part stake

Mahindra & Mahindra rose 1.31% to Rs 1,398 at 11:45 IST on BSE after the company said that Life Insurance Corporation of India sold 2.001% or 1.24 crore shares of the company in open market on 5 July 2017.

The company made the announcement on Saturday, 15 July 2017.

Meanwhile, the S&P BSE Sensex was up 69.22 points or 0.22% at 32,089.97.

High volumes were witnessed on the counter. On the BSE, 9.75 lakh shares were traded on the counter so far as against the average daily volumes of 1.62 lakh shares in the past one quarter. The stock had hit a high of Rs 1,402 and a low of Rs 1,378.05 so far during the day. The stock had hit a record high of Rs 1,508.80 on 9 August 2016 and a 52-week low of Rs 1,141.80 on 2 December 2016.

The stock had underperformed the market over the past one month till 14 July 2017, falling 1.98% compared with 2.78% gains in the Sensex. The scrip had also underperformed the market in past one quarter, gaining 7.59% as against Sensex's 8.69% gains. The scrip had also underperformed the market in past one year, dropping 4.75% as against Sensex's 14.6% rise.

The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

Life Insurance Corporation of India's stake in Mahindra & Mahindra (M&M) has fallen to 9.958% from the earlier 11.959% after the sale.

M&M's net profit rose 19.9% to Rs 725.16 crore on 3.3% rise in net sales to Rs 11125.15 crore in Q4 March 2017 over Q4 March 2016.

M&M enjoys a leadership position in tractors and utility vehicles in India.

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