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M&M sells entire 3.5% stake in RBL Bank ahead of open offer by Emirates NBD
On 26 July 2023, M&M acquired 3.53% shareholding in RBL Bank for ₹417 crore as treasury investment. Today, the stake was sold for ₹678 crore at 62.5% gain.
Mahindra & Mahindra Ltd. has sold its entire 3.5% stake in RBL Bank Ltd. at 62.5% gain, ahead of an open offer by Dubai’s Emirates NBD to acquire a majority stake in the private lender.
On 26 July 2023, M&M acquired 3.53% shareholding in RBL Bank for ₹417 crore as a treasury 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 7-10-year period and would be maintained unless a strategic opportunity emerged.
Today, the stake was sold for ₹678 crore at a 62.5% gain, according to an exchange filing on Thursday (6 November 2025).
Analysts had questioned the rationale for the investment, given M&M's core focus on automobiles. The company later said it had no intention to increase its holding in the lender.
RBL Bank open offer
M&M's exit from RBL Bank comes weeks after Emirates NBD announced plans to acquire a 60% stake in RBL Bank for $3 billion, in what would be the largest cross-border deal in India’s financial sector. That—according to India's stock market rules—triggers an open offer, which will open on 12 December.
The RBL Bank open offer is priced at ₹280 apiece. The stock is currently trading at in the ₹320-330 range.
India allows 74% foreign investment in private banks but limits shareholdings of any single foreign institution to 15% unless regulator the Reserve Bank of India grants an exemption.
