Shares of Mahindra CIE Automotive Ltd. hit a record high on Wednesday after its promoter, the Mahindra Group, sold its remaining stake in the company.
Mahindra and Mahindra Ltd. sold as many as 12.1 million shares, or 3.195% stake at Rs 447.65 apiece, in the automotive component supplier via block trades, as per its exchange filing.
Earlier in March, Mahindra & Mahindra sold over 6% of its stake in the automotive component supplier, lowering its shareholding from 9.25% to 3.19% as of March 31.
Mahindra's stake in the automotive component supplier now stands at nil after it completely relinquished voting rights in Mahindra CIE Automotive via stock exchanges.
Shares of Mahindra CIE Automotive surged 9.01% intraday before paring gains and trading 5.28% higher as of 10:30 a.m., as compared with a 0.02% advance in the Nifty 50. The scrip hit an all-time high of Rs 493.65 apiece intraday.
Total traded volume so far in the day stood at 36.1 times its 30-day average. The relative strength index was at 77, implying that the stock may be overbought.
All seven analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 2.9%.
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