Mahindra & Mahindra exits RBL Bank with ₹682 cr deal

In a decisive move, Mahindra & Mahindra (M&M) has sold its entire 3.45 per cent stake in RBL Bank through a block deal valued at around ₹682 crore, marking the automaker’s complete exit from the private lender just over a year after its entry.

According to Bloomberg, the floor price for the block has been set at ₹317 per share — a discount of roughly 2.1 per cent to the bank’s latest market price. Despite queries, M&M has not yet issued an official comment on the transaction.

The sale brings a tidy profit for the Mumbai-headquartered conglomerate. M&M had invested ₹417 crore in July 2023, buying RBL Bank shares at ₹197 apiece. The exit now delivers an impressive 64 per cent return on investment within 16 months — a notable gain even by equity market standards.

When the investment was first made, M&M clarified that it viewed the stake as a strategic learning opportunity rather than a long-term financial commitment. In August 2023, the company’s Managing Director and CEO, Anish Shah, had stated there was “no intention of going further,” adding that the move was aimed at understanding the banking sector better to enhance value across its broader ecosystem.

With the sale, M&M has closed the chapter on its brief foray into the financial services space. The timing and profitability of the exit underscore the company’s focused approach toward capital allocation — entering with intent, learning fast, and exiting with gains.

As of Thursday morning, M&M shares were trading at ₹3,605.80 on the NSE, up 0.69 per cent, while RBL Bank shares remained steady despite the block trade buzz.