For ₹678 crore, Mahindra & Mahindra sells all of its shares in RBL Bank.

Mahindra and Mahindra reported a 62.5% return after selling its whole 3.53% interest in RBL Bank for ₹678 crore. This action comes after Emirates NBD, a prominent foreign investor in India's banking industry, plans to pay $3 billion to acquire the majority of RBL Bank.

In an exchange filing on Thursday, November 6, Mahindra and Mahindra (M&) said that it has sold all of its shares in lender RBL Bank for ₹678 crore. The sale takes place a few days after the lender revealed Emirates NBD's intentions to purchase the majority of RBL Bank, a significant foreign investment in India's banking industry.

In 2023, the corporation paid ₹417 crore to acquire a 3.53% share in RBL Bank as a treasury investment. Mahindra and Mahindra notified the exchanges about the transaction on July 26, 2023, stating that it will expand its share contingent on pricing, regulatory clearances, and necessary procedures. M&M claims that the Thursday sale produced a 62.5% gain.

"We refer to our letter of July 26, 2023, in which the Company announced that it would be investing Rs. 417 crores to acquire a 3.53% interest in RBL Bank as a treasury. According to M&M's most recent exchange filing, "We would like to inform you that the Company has sold its entire stake in RBL Bank today for a consideration of Rs. 678 Crores, representing a 62.5% gain on the investment."

At approximately 10:12 am on Thursday, November 6, the price of Mahindra and Mahindra shares increased by 1.44% to ₹3,633 per. On Thursday, November 6, during market trading hours, the automaker made the news. On Thursday, the opening price of M&M shares on the BSE was ₹3,603.45 per share.

Following the announcement, shares of RBL Bank increased 0.54% to ₹325.75 each. On the BSE, the lender's share price opened at ₹326.15 per share.

Emirates NBD acquisition of RBL Bank M&M's most recent action comes just days after the lender revealed in its quarterly earnings report that Emirates NBD intends to buy a majority stake in RBL Bank for $3 billion, or roughly ₹26,850 crore, which would be the biggest equity and foreign direct investment fundraising in the Indian banking industry. Months after the RBI gave the Dubai bank in-principle permission to create a wholly owned subsidiary in India, RBL Bank made the announcement.

After the deal is finished, Emirates NBD will be named as the domestic bank's promoter based on regulatory and other approvals. As a result, it will also be able to propose directors for the bank's board.