M&M acquires 3.53% stake in RBL Bank for Rs 417 cr

Mahindra and Mahindra on Wednesday said it acquired a 3.53% stake in RBL Bank Ltd for Rs 417 crore.

M&M said it will consider further investment subjected to regulatory nods and required procedures but won't acquire more than 9.9% stake.

"We have acquired a 3.53 % stake in RBL Bank as an investment at a cost of Rs 417 Crores. We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9%," said M&M in a stock exchange filing.

In a separate statement, RBL said it was not aware of any stock purchase by Mahindra.

"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% of the total paid up share capital of the Bank," said RBL Bank in a stock exchange filing.

On Wednesday, RBL Bank's scrip on BSE closed trading 7% to Rs 239.4.

Mahindra already owns non-banking financial company Mahindra and Mahindra Financial.

An approval from the Reserve Bank of India is needed to acquire a 5% stake in any Indian lender.