Mumbai (Maharashtra) [India], June 3 (ANI): Mahindra & Mahindra (M&M) Benefit Trust on Monday sold 1.92 crore shares of Mahindra & Mahindra (M&M) worth Rs 1,244 crore on the Bombay Stock Exchange (BSE) to CDPQ, an institutional investor that manages funds for several public and para-public pension and insurance plans at Quebec in Canada.
The M&M Benefit Trust was created in July 2008 for the exclusive benefit of Mahindra & Mahindra Ltd. The shares held by the trust were the outcome of various mergers and schemes of amalgamation.
The trust held 10.36 crore shares of M&M Ltd. According to the trust deed, the proceeds of the sale will be transferred to M&M Ltd to be used by the company for its operational requirements. After Monday's transaction, the M&M Benefit Trust will hold 8.44 crore shares representing 6.8 per cent of the company's equity capital.
"Since the Benefit Trust holds M&M shares for the benefit of its shareholders, it has decided to monetise part of the holding by divesting to a long-term, high-quality investor," said Mahindra Group's CFO V S Parthasarathy.
"This is the first investment by CDPQ in the Mahindra Group, reposing its faith in future prospects of the company and Indian economy in general," he said in a statement.
Anita George, Executive Vice President for Growth Markets and Strategic Partnerships at CDPQ, said: "We are excited to partner with the Mahindra Group in this first investment and are looking forward to further developments in this strategic partnership as we grow our portfolio in India and across the world. We believe that the long-term value creation approach of the Mahindra Group aligns well with CDPQ objectives and perspective as a global institutional investor."
Created in 1965, CDPQ today manages more than 309.5 billion Canadian dollars with investments in 60 countries. It invests funds worldwide, targeting high-quality assets rooted in the real economy.
The Mahindra Group is a 20.7 billion US dollar (about Rs 1.45 lakh crore) federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It employs over 2.4 lakh people across 100 countries. (ANI)