BENGALURU (Reuters) – Indian tech-to-tractor conglomerate Mahindra & Mahindra on Wednesday said it bought a 3.53% stake in private lender RBL Bank for 4.17 billion rupees ($50.8 million).
The company might consider further investment in the lender subject to pricing, regulatory approvals and required procedures, Mahindra said, adding that the investment will not exceed a 9.9% stake.
Multiple block deals were seen in RBL Bank on Wednesday and the stock ended up 7.1%.
In a separate statement, RBL said it was not aware of any stock purchase by Mahindra.
Mahindra already owns non-banking financial company Mahindra and Mahindra Financial.
An approval from the Reserve Bank of India is needed to acquire a 5% stake in any Indian lender.
($1 = 82.0473 Indian rupees)
(This story has been corrected to add the dropped word ‘bought’ in paragraph 1)
(Reporting by Sethuraman NR in Bengaluru; Editing by Sonia Cheema)