M&M Shares Hit Record After Unit Inks Pact To Exit Associate Company
The share price has gained 76.60% in the last 12 months and 31.3% on a year-to-date basis.
Mahindra & Mahindra Ltd.'s stock hit an all-time high on Wednesday after its wholly owned subsidiary executed a share purchase agreement for sale of its entire stake in New Delhi Centre for Sight Ltd.
The proposed transaction will involve Mahindra Holdings Ltd. selling 30.83% of the paid-up capital of the NDCFS to Space Investments Ltd., Defati Investments Holding BV and Infinity Partners in a fully diluted basis for Rs 425.4 crore, according to an exchange filing.
NDCFS is an associate company of Mahindra Holdings under the Companies Act and also a joint venture between Mahindra Holdings and M&M, it said. NDCFS did not contribute to the consolidated revenue of the Scorpio manufacturer.
M&M's stock rose as much as 0.75% during the day to Rs 2,286.95 apiece on the NSE. It was trading 0.49% higher at Rs 2,281.10 per share, compared to a 0.31% advance in the benchmark Nifty at 09:56 a.m.
The share price has gained 76.60% in the last 12 months and 31.3% on a year-to-date basis. The total traded volume so far in the day stood at 0.11 times its 30-day average. The relative strength index was at 70.51, implying that the stock may be overbought.
Thirty-six out of the 41 analysts tracking the company have a 'buy' rating on the stock and five recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 9.2%.
