Block Deal Alert: This bank may have a block deal worth Rs 700 crore

News Topical, Digital Desk : A major block deal could be completed in RBL Bank on Thursday. Sources indicate that M&M may sell its entire 3.45% stake through the block deal. The total value of the deal could be around ₹700 crore. The deal could be through the block window, with a floor price of ₹317 per share. On Tuesday, the stock closed at ₹324, down more than 1%. M&M could sell 21.2 million shares through the deal. Based on the floor price, the deal could be worth ₹682 crore.

Mahindra & Mahindra will receive a 64% return on its investment of ₹417 crore. This deal will provide M&M with a robust return of approximately 64% on its ₹417 crore investment. The company acquired a minority stake in RBL Bank in July 2023 at ₹197 per share. With the block deal, the auto giant will completely exit the bank. The decision to exit comes just over a year after the investment. In August 2023, M&M Managing Director and CEO Anish Shah told the media that the company had no intention of further investing in the bank. 

How the Stock Performed: RBL Bank stock closed at ₹324 on Tuesday. The stock has delivered impressive returns to its investors. A year ago, the stock was below ₹175. Since then, it has seen a steady rise. This week, the stock hit a year-long high of ₹332. The stock had fallen to ₹146 in January. 

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