BackM&M Q1 result: M&M will not invest in any other bank, CEO Anish Shah
M&M Q1 results: Mahindra & Mahindra CEO Anish Shah ,on Friday, said that capital allocation in RBL bank will remain unchanged
PremiumM&M Q1 results: After buying 3.53% stake in private lender RBL bank, Mahindra & Mahindra, on Friday, made it clear that it will not increase its capital allocation in RBL bank unless it finds a compelling strategic value in the bank in future. Earlier, Mahindra & Mahindra gave a hint of increasing its allocation in RBL bank to 9.9%.
Mahindra & Mahindra MD and CEO Anish Shah, also made it clear that the company will not invest in any other bank.
Markets LIVE Updates
As of now, its investment has not changed and there is no intention of going further beyond this, said M&M CEO Anish Shah on Friday. Mahindra & Mahindra reported a 97.6% rise in its standalone net profit to ₹2,773.73 crore in the quarter ended in June 2023 from ₹1,403 crore a year ago period.
At 2:50 pm, M&M shares were trading 0.53% lower at ₹1460.60 apiece on BSE on Friday. Soon after the announcement of Q1FY24 result, the company shares nosedived.
Also Read: Maruti Suzuki vs M&M vs Tata Motors: Which is the better auto major for long term?
Recently, the company had invested ₹400 crores for a 3.5 per cent stake in RBL Bank, Mahindra and Mahindra said in its stock exchange filing on Friday. Mahindra Finance's valuation is close to ₹40,000 crores.
'Not expecting to invest more, unles…' M&M MD and CEO Anish Shah
The company has invested in the bank for a long-term period of 7 to 10 years. The primary purpose of the investment is to understand the banking sector ,which will enable the company to enhance its value of its financial services business. The company will also strive to explore potential for synergies.
The auto major had made it clear that it is not expecting to invest more as of now. However, if the company finds a compelling strategic value in the bank in future, it can increase its stake to 9.9%.
“There is no intention of going further beyond this - there is no intention to be a bank right now. We saw an opportunity with a 1x P/B, very well run bank with a good management. We expect this investment to generate handsome returns over time, there is no cost to us therefore to make this investment to understand the financial services business," said Anish Shah, MD & CEO.thh
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
