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Block Deal News: Anand Mahindra-led Mahindra & Mahindra (M&M) Ltd is set to sell its entire 3.45 per cent stake in RBL Bank through a block deal valued at around Rs 682 crore, according to market sources.

The proposed floor price for the deal has been fixed at Rs 317 per share, representing a 2.1 per cent discount to RBL Bank’s previous close of Rs 324 on Wednesday.

The stock, however, rose around 2.4 per cent intraday to hit a high of Rs 331.80 on Thursday, reflecting strong investor interest ahead of the deal.

Post block deal, Mahindra & Mahindra Limited holds 2,11,43,000 shares, representing a 3.45 per cent stake in RBL Bank.

M&M had originally acquired the stake in July 2023 for about Rs 417 crore, purchasing RBL Bank shares at Rs 197 apiece.

The automaker is set to earn a profit of about Rs 265 crore, a 64% return, from its one-year investment in RBL Bank.

The sale of this stake through the block route will mark M&M’s complete exit from the private sector lender.

The stake sale comes at a time when RBL Bank has been in focus following a string of major developments, including a significant foreign investment proposal by Emirates NBD Bank, the second-largest bank in the UAE.

RBL Bank recently announced that Emirates NBD will acquire up to 60 per cent stake in the lender through a preferential allotment of shares worth Rs 26,853 crore, marking the largest-ever foreign direct investment (FDI) in India’s financial services sector.

As part of this investment, Emirates NBD Bank will subscribe to 95.9 crore fully paid-up equity shares of RBL Bank at Rs 280 per share, equivalent to 60 per cent of the post-issue capital.

Following this infusion, Emirates NBD will become the promoter of RBL Bank, which in turn will become a subsidiary of a foreign bank, subject to regulatory approvals.

The transaction has also triggered a mandatory open offer under SEBI’s takeover regulations, wherein Emirates NBD will look to acquire up to 26 per cent of RBL Bank’s public shareholding.

The open offer period will begin on December 12 and close on December 26, with an offer price of Rs 280 per share for up to 41.55 crore shares. This could further consolidate Emirates NBD’s holding and control in RBL Bank once completed.

The developments come at a crucial time for RBL Bank, which recently reported improved performance in the September quarter (Q2 FY26). The bank posted a 16 per cent rise in net profit to Rs 160 crore, compared to Rs 138 crore in the same period last year.

Total income increased to Rs 1,458 crore, while net interest income (NII) rose 15 per cent year-on-year to Rs 424 crore. Operating profit grew sharply by 39 per cent to Rs 279 crore, indicating stronger core operations.

However, asset quality showed marginal weakness, with gross NPAs rising to 1.81 per cent from 1.68 per cent a year earlier, though net NPAs improved to 0.52 per cent from 0.69 per cent.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi