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M&M heads higher after unit sells part stake in Spanish firm

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Capital Market
Last Updated : Dec 14 2017 | 12:16 PM IST

Mahindra & Mahindra rose 1.02% to Rs 1,427 at 11:50 IST on BSE after the company said that its wholly owned subsidiary sold 64.5 lakh shares, representing 5% of the share capital of CIE Automotive S.A.

The announcement was made after market hours yesterday, 13 December 2017.

Meanwhile, the S&P BSE Sensex was down 115.52 points, or 0.35% to 32,937.52.

On the BSE, 32,684 shares were traded in the counter so far, compared with average daily volumes of 1.08 lakh shares in the past one quarter. The stock had hit a high of Rs 1,434.90 and a low of Rs 1,414.25 so far during the day. The stock had hit a 52-week high of Rs 1,459.50 on 12 June 2017. The stock had hit a 52-week low of Rs 1,142.05 on 27 December 2016.

The stock had outperformed the market over the past one month till 13 December 2017, gaining 0.11% compared with 0.06% gains in the Sensex. The scrip had also outperformed the market in past one quarter, rising 8.3% as against Sensex's 2.69% rise. The scrip had, however, underperformed the market in past one year, gaining 20.87% as against Sensex's 23.8% rise.

The large-cap company has equity capital of Rs 310.80 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) said that its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) (MOICML) on 13 December 2017, sold 64.5 lakh shares, representing 5% of the share capital of CIE Automotive S.A. The Spanish company is listed on the Madrid and Bilbao Stock Exchanges. The average gross price was Euro 23.50 per share. The deal totaled Euro 151.58 million.

Following the sale, MOICML's shareholding in CIE Automotive S.A. would come down to 7.435% of its share capital. The transaction will facilitate diversification of investor base of CIE Automotive S.A.

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MOCIML would utilize the sale proceeds for part re-payment of MOICML's debt and/or for declaration of dividend or for any other purpose, as may be decided by the board of MOICML.

M&M's net profit rose 24.8% to Rs 1331.57 crore on 14% rise in net sales to Rs 12182.07 crore in Q2 September 2017 over Q2 September 2016.

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

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First Published: Dec 14 2017 | 11:54 AM IST

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