Mahindra & Mahindra exits RBL Bank with $77.1 million stake sale

Mahindra & Mahindra (M&M) has sold its 3.53 per cent stake in RBL Bank for ₹678 crore (around US$77.1 million), marking a 62.5 per cent gain on its original investment, the company said in a regulatory filing on Thursday.

The diversified Mumbai-based conglomerate had acquired the stake as a treasury investment in July 2023 for ₹417 crore.

“In furtherance to the above, we would like to inform you that the company has today sold its entire stake in RBL Bank for a consideration of ₹678 crore representing a 62.5 per cent gain on the investment,” M&M said in its filing.

Mahindra did not disclose the buyers of the shares, but the transaction comes at a time of heightened investor interest in RBL Bank after the UAE-based Emirates NBD announced plans to purchase a 60 per cent stake for ₹26,853 crore.

Emirates NBD’s open offer to acquire up to 26 per cent of RBL Bank’s shares from public shareholders will run from December 12 until December 26, it was revealed today.

M&M’s exit aligns with its broader strategy of optimising capital allocation and focusing on core business areas including automotive manufacturing, farm equipment, and electric mobility.

RBL Bank’s stock has been trading higher in recent weeks amid strong market sentiment following the Emirates NBD announcement, which analysts say could bolster the bank’s capital base and growth prospects.