Mahindra & Mahindra Exits RBL Bank Stake, Nets 62.5% Profit in Just Two Years

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Mumbai: Mahindra & Mahindra (M&M), led by Anand Mahindra, has sold its entire 3.53% stake in RBL Bank, realizing a total deal value of ₹678 crore. The sale comes nearly two years after M&M had initially invested in the bank, yielding a remarkable 62.5% return on their investment.

Strategic Investment
M&M had purchased its stake in RBL Bank on 26 July 2023, investing ₹417 crore. In a regulatory filing, the company stated:
“We wish to inform you that the company has sold its entire stake in RBL Bank today for ₹678 crore, resulting in a 62.5% gain on our investment.”

Market Reaction
Following the announcement, M&M shares rose 1.84% to ₹3,647.50 on the BSE at noon on Thursday. RBL Bank shares also responded positively, climbing 1.06% to ₹327.45 during the same period.

M&M’s Investment Perspective
After making the investment, M&M Managing Director Anish Shah had clarified that the company did not plan to increase its stake beyond 9.9%, unless under special circumstances. Shah noted:
“Currently, we are not considering increasing our stake, but this investment helps us gain a deeper understanding of the banking sector. It also adds value to a business with approximately ₹40,000 crore market capitalization.”