India’s Mahindra & Mahindra sold its entire 3.5 per cent stake in RBL Bank for 6.78 billion rupees ($77.1 million), the automaker said on Thursday, marking a 62.5 per cent return on its 2023 investment.
At the time of the acquisition, CEO Anish Shah said the move was aimed at gaining deeper insights into the banking sector over a seven- to 10-year period and would be maintained unless a strategic opportunity emerged.
Analysts had questioned the rationale behind the investment, given Mahindra’s core focus on automobiles. The company later said it had no intention to increase its holding in the lender.
Shares of the automaker rose 1.5 per cent in early trade on Thursday, while RBL inched 1 per cent higher.
The exit comes weeks after Dubai’s Emirates NBD announced plans to acquire a 60 per cent stake in RBL Bank for $3 billion, in what would be the largest cross-border deal in India’s financial sector.
