M&M acquires 3.53% stake in RBL Bank: M&M shares slip 6%; RBL Bank stock close over 2% down
At around 10:05 AM, shares of the M&M were trading 6.2 per cent lower at Rs 1449.65 apiece on the BSE. At the same time, RBL Bank shares were trading 3.18 per cent higher at Rs 246.40 apiece.
Shares of Mahindra & Mahindra (NSE: M&M) slipped over 6 per cent in Thursday's trading session to touch the day's low of Rs 1,449.65 apiece on the BSE. The selling of the stock came after the company acquired a 3.53 per cent stake in RBL Bank for Rs 417 crore and said it could make further investments without exceeding a 9.9 per cent stake.
Meanwhile, RBL Bank shares also traded in the red during the opening but recovered losses later and rose as much as more than 5 per cent on the BSE.
At around 10:05 AM, shares of the automotive manufacturer were trading 6.2 per cent lower at Rs 1449.65 apiece on the BSE. The stock was trading lower for the second straight session. The market capitalisation of the company stood at Rs 1,80,268.16 crore. At close, M&M shares slipped 6.39 per cent and closed at Rs 1446.85 apiece.
At the same time, RBL Bank shares were trading 3.18 per cent higher at Rs 246.40 apiece on BSE. The scrip is rallying for the sixth trading session. The market capitalisation of the company stood at Rs 14,776.54 crore. RBL Bank stock ended 2.6 per cent lower at Rs 232.6 a share.
M&M's acquisition of RBL Bank
Mahindra & Mahindra on Wednesday acquired a 3.53 per cent stake in RBL Bank for Rs 417 crore and said it could make further investments without exceeding a 9.9 per cent stake.
In a separate filing, in response to a clarification sought by BSE, RBL Bank said, "...The holding of Mahindra & Mahindra Ltd as per the last beneficiary position as on July 21, 2023, as received from the depository (NSDL) is 3.53 per cent of the total paid-up share capital of the bank."
"At the current juncture, M&M is near its monthly central pivot range of 1400-1430 which would ideally support zone for the said counter. One can add in the said range for target of 1560 and stop-loss would 1360," said Jigar S Patel, Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.
M&M share price: Past performance
So far in 2023, shares of M&M have gained over 14 per cent against the headline index's rise of nearly 9 per cent.
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