Mahindra & Mahindra Ltd. shares moved between gains and losses today after the automaker sold nearly 1.92 crore shares of the company at Rs 650 apiece in a block deal to Canadian pension fund CDPQ, raising over Rs 1,240 crore.
“Since the Benefit Trust holds M&M shares for the benefit of its shareholders, it has decided to monetize part of the holding by divesting to a long-term, high-quality investor,” VS Parthasarathy, the chief financial officer of the Mahindra Group, was quoted as saying in an exchange filing.
The M&M Benefit Trust was created in July 2008 for the exclusive benefit of Mahindra & Mahindra Ltd. and holds nearly 10.36 crore shares called the treasury stock—the outcome of various mergers and amalgamation. Proceeds from the stake sale are transferred to M&M to be used for operational requirements.
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