CDPQ picks up $206mn stake in M&M

Caisse de dépôt et placement du Québec (CDPQ) has picked up a 1.76 per cent stake in Mahindra & Mahindra Ltd (M&M) for $205.6 million (Rs 1,424.56 crore), marking the first investment by Canada's second-largest pension fund in India's automobile sector. In a stock exchange filing, Mahindra said that the M&M Benefit Trust had sold 1.92 crore shares at Rs 648 apiece to CDPQ. In addition, the investment firm bought 2.78 million shares from M&M Employees Welfare Fund. The Trust, which was created in 2008, is part of the company′s promoter group. Post the sale, the shareholding of the promoter group has come down from 20.44 per cent to 18.90 per cent. The Trust's holding will decline to 6.8 per cent from 8.4 per cent earlier. The proceeds would be transferred to M&M and would be used by the company for its various operational requirements, the automaker added. Anita George, CDPQ India's executive vice president (growth markets and strategic partnerships), said that the firm would be scouting for further developments in the strategic deal with M&M as the investment firm continues to grow its portfolio in India and other international geographies.