Mahindra Overseas Investment Company (Mauritius) Ltd, a wholly owned subsidiary of the Company (“MOICML”) has on December 13, 2017, executed a sale of 64,50,000 shares representing 5% of the Share Capital of CIE Automotive S.A., a company incorporated in Spain and quoted on the Madrid and Bilbao Stock Exchanges at an average gross price of Euro 23.50 per share, aggregating Rs~114cr.
The sale has been executed on the stock exchange. Following the sale, MOICML’s shareholding in CIE Automotive S.A. would come down to 7.435% of its share capital. This transaction will facilitate diversification of Investor base of CIE Automotive S.A.
MOCIML is wholly owned subsidiary of Mahindra and Mahindra. M&M will benefit from the proceeds of stake sale, which will improve the cash flow and help in repayment of debt.
Company can also use the proceeds for declaration of dividend or for any other purpose.
Mahindra and Mahindra company’s business continues to do well on all parameters such as cycle, market, margins, exports etc but we remain concerned over the Auto business. Further, the implementation of BS-VI emission norms in 2020 is a risk to M&M, as the company has no petrol offering at present in passenger vehicle segment (PV). We have a positive outlook for the stock and at current market price stock trades at ~6.2 EV/EBITDA
FY20E.
Mahindra & Mahindra Ltd is currently trading at Rs1,424.85, up by Rs12.3 or 0.87% from its previous closing of Rs1,412.55 on the BSE.
The scrip opened at Rs1,424 and has touched a high and low of Rs1,434.9 and Rs1,414.25 respectively. The current market cap of the company is Rs87,803.58cr.
The BSE group 'A' stock of face value Rs5 has touched a 52 week high of Rs1,459.5 on 12-Jun-2017 and a 52 week low of Rs1,142.05 on 27-Dec-2016.
Last one week high and low of the scrip stood at Rs1,431.15 and Rs1,367, respectively.
The promoters holding in the company stood at 25.21% while Institutions and Non-Institutions held 54.04% and 15.22%, respectively.
The stock is currently trading above its 50DMA.
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