Prudential Management and Services sells 0.7% stake in M&M for Rs 1,778 cr

Prudential Management and Services, one of the promoters of Mahindra & Mahindra, on Thursday pared 0.75 per cent stake in the company for Rs 1,778 crore through an open market transaction.

According to the bulk deal data available with the National Stock Exchange (NSE), Prudential Management and Services offloaded 93,00,000 shares, amounting to a 0.75 per cent stake in Mahindra & Mahindra.

The shares were disposed of at an average price of Rs 1,912.04 apiece, taking the deal size to Rs 1,778.19 crore.

Details of the buyers could not be ascertained.

Shares of Mahindra & Mahindra tumbled 3.99 per cent to close at Rs 1,892 apiece on the NSE.

In a late evening disclosure on Wednesday to the exchanges amid reports on the proposed block deal by the promoter group entity PMSL, Mahindra & Mahindra clarified that "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".

The family will continue to retain the status of the promoter group of M&M and there is no intention to sell further shares in the foreseeable future, the company said in an exchange filing.

As per the shareholding data available on the BSE, the promoter and promoter group entities hold a 19.32 per cent stake in M&M, of which Prudential Management and Services Private Ltd owns an 11.64 per cent stake in the company.