As per the report of CNBC, Mahindra, and Mahindra Limited, an Indian multinational automotive manufacturing company has publicized that the company is planning to sell its stake.
Currently, Mahindra and Mahindra Limited hold a 9.25% stake in Mahindra CIE. The firm publicized that it will unload a 6.5% stake in Mahindra CIE by block deals.
It is anticipated that the deal size would be of value Rs 892.6 crore having an exchange of shares at a value of Rs 365 per share.
Automobile Share Scrap
Soon after the publicization, the shares of M&M scraped about 3% and concluded the session at Rs 1,192 levels. At the same time, the shares of Mahindra CIE Automotive shed by 7.7% and concluded at Rs 363 levels at the same time and the same day.
Mahindra CIE Automotive Limited is busy doing production as well as the sale of automotive bodies to initial equipment producers and other clients in India and outside.
M&M Limited lists its name among the most wide-ranged automobile firms in our country having a name over 2-wheelers, 3-wheelers, PVs, CVs, tractors, and earthmovers.
M&M also has its name in over 22 industries and 100+ nations and functions 150+ bodies on a unified basis.
With the help of its branches and group firms, the company has a name over financial services, auto components, hospitality, infrastructure, retail, logistics, and many more.
The Game Of Digits
Going deep down into the financials of the company, the incomes have gone down from Rs 2,723.15 crores in the second quarter and Rs 2,246.84 crores in the third quarter.
On collating and comparing, the net profit has increased from Rs 171 crores in the second quarter and Rs 194.4 crores in the third quarter.
The profitability ratios of the firm also improved when ROE shifted from 2.24% in FY20-21 and 7.76% in FY 21-22. ROCE shifted from 3.95% in FY20-21 and 11% in FY21-22.
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In the recent quarter, the promotors have 74.96% stakeholdings in the firm. FII’s have slightly gone up in their stake showing their recent holdings of 7.29% in the firm.
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