Expectations of a significant block sale involving Mahindra & Mahindra (M&M) have put RBL Bank shares under spotlight on Thursday. M&M is reportedly planning to sell all of its 3.45% interest in the lender for ₹682 crore, with a base price of ₹317 per share.

Key Highlights

• Mahindra & Mahindra plans to fully offload its 3.45% stake in RBL Bank via a block deal worth around ₹682 crore.
• Having invested ₹417 crore in July 2023, Mahindra & Mahindra expects a 64% return on its exit at a floor price of approximately ₹317 per share.

According to reports, the floor price is ₹317 per share. Due to the strong increase in RBL Bank's stock value during that time, M&M is expected to receive a 64% return on its ₹417 crore investment made in July 2023 when it bought a minority position at ₹197 per share.

In addition, Emirates NBD Bank plans to invest up to ₹26,853 crore, or around $3 billion, in order to purchase a 60% share in RBL Bank. After the board approved the allocation of 96 crore additional equity shares last month, this investment will proceed through a preferential equity issue at ₹280 per share.

Shares of RBL Bank ended the previous session at ₹322.3, down 1.96%. With gains of 16.9% in the last month, 63.5% in the previous six months, and 104.3% so far this year, the stock has had a notable surge.

Also Read: Emirates NBD to Acquire 51% Stake in RBL Bank for Rs 15,000 Cr

These outcomes have surpassed industry benchmarks and rivals, highlighting significant investor interest and favorable sentiment regarding the bank, particularly in light of recent strategic investments and stake sales.