Mahindra and Mahindra on Wednesday said it acquired a 3.53% stake in RBL Bank Ltd for Rs 417 crore.
M&M said it would consider further investment subject to regulatory compliance and required procedures but would not acquire a stake of more than 9.9%.
“We have acquired a 3.53% stake in RBL Bank at a cost of Rs 417 crore. We may consider further investments subject to pricing, regulatory approvals and required procedures. However, under no circumstances will it exceed 9.9%,” M&M said in a stock exchange filing.
In a separate statement, RBL said it was not aware of any purchase of Mahindra stock.
“The Bank intends to state that as on July 21, 2023, the total paid-up share capital of the bank received from the holding depository of Mahindra & Mahindra Limited (NSDL) is 3.53%,” RBL Bank said in a stock exchange filing.
On Wednesday, RBL Bank scrip rose 7% to close at Rs 239.4 on the BSE.
Mahindra already owns non-banking financial conglomerate Mahindra & Mahindra Financial.
Reserve Bank of India approval is required for any Indian lender to acquire a 5% stake.
