M&M picks up 3.5% stake in RBL Bank for ₹417 cr

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Mahindra & Mahindra Limited has picked up 3.53 per cent stake in RBL Bank as an investment at a cost of ₹417 crore, the company informed the exchanges on Wednesday.

“We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9 per cent,” it said.

Following reports of the stake buy, shares of RBL Bank jumped 8.5 per cent to touch a 52-week high of ₹242.20 intraday. The stock later pared some gains to close 7.2 per cent higher at ₹239.40 on the NSE.

As per RBI norms, any entity looking to acquire over 5 per cent stake in a bank needs to seek prior approval from the regulator.

“No such application has been received by us till date. The bank wishes to state that the holding of Mahindra & Mahindra Limited as per the last beneficiary position as on July 21, 2023 as received from the depository (NSDL) is 3.53 per cent of the total paid up share capital of the Bank,” RBL Bank notified the bourses.

As of the June 30 shareholding, M&M held no stake in the bank.