Key Points of Block Deals:
- Mahindra & Mahindra is selling 4.6% of its interest in Mahindra CIE Automotive for Rs 615 crore through a block transaction.
- Mahindra CIE Automotive is a manufacturer of automotive components.
- The deal has a floor price of Rs 355 per share.
- Investors will have a 60-day lock-up period following the block deal.
- Mahindra & Mahindra will still own 9.25% of Mahindra CIE Automotive after the sale.
- Mahindra CIE Automotive’s net profit tripled in the December quarter thanks to solid operating results and extraordinary profits.
- Mahindra CIE Automotive’s consolidated earnings and revenue increased YoY in Q4 FY23, with India and Europe showing strong growth.
Details of Block Deals:
4.6% of Mahindra CIE Automotive is going to be sold by Mahindra & Mahindra for Rs 615 crore.
Mahindra CIE Automotive Ltd.(M&M), a manufacturer of automotive components, will see the sale of a 4.6 percent interest by Indian auto giant Mahindra & Mahindra through a block transaction on Monday. With a floor price of Rs 355 per share, the expected deal size is Rs 615 crore. Investors will have a 60-day lock-up period following the block deal.
Mahindra & Mahindra will own 9.25 percent of Mahindra CIE Automotive, a division of the Spanish CIE automotive group, as of December 2022. In the December quarter, the auto component company’s net profit tripled on a YoY basis to Rs 195 crore thanks to solid operating results and extraordinary profits.
Mahindra CIE Automotive’s consolidated earnings increased by 153% YoY to Rs 195 crore in Q4 FY23, and the firm expects to post above 10% growth in CY23. When compared to the same period last year, its consolidated revenue for the December quarter increased by 35% to Rs 2,247 crore thanks to strong operations in India and cost pass-throughs in the European Union.
Mahindra CIE Automotive’s India business surged by 21.7 percent YoY to Rs 1,407 crore during the same period, while its Europe business increased by 43 percent to Rs 1,323.1 crore. Overall, this shows that the auto component company is on a promising growth trajectory.
About M&M:
Mahindra & Mahindra Ltd.(M&M) is one of India’s most well-rounded automakers, offering 2-wheelers, 3-wheelers, PVs, CVs, tractors, and earthmovers. Through its subsidiaries and group companies, it is also present in the following industries: financial services, auto components, hospitality, infrastructure, retail, logistics, steel trading and processing, IT businesses, agribusiness, aerospace, consulting services, defence, energy, and industrial equipment. Ghulam Mohammad and two Mahindra Brothers (KC and JC Mahindra) formed it in 1945, and in 1948 it changed its name to Mahindra & Mahindra.
For More Latest News Click Here
