Mahindra & Mahindra Ltd (M&M). shares fell as much as 4% on 7 March when the company saw a block deal taking place on the exchanges that resulted in 1.1 crore shares or 0.9% of the total equity changing hands.

The total transaction value was Rs 2,184 crore, and the shares were sold at an average price of Rs 1,924 per share. The stake sale was carried out by a group entity called Prudential Management and Services Pvt. Ltd. (PMSL).

M&M informed to the regulatory in its latest filing that after the transfer of the shares of PMSL that were owned by the late Mr. Keshub Mahindra, the former Chairman of M&M, to his family members, Mahindra & Mahindra clarified that the family’s need for liquidity for specific needs is the reason behind the stake sale. Therefore, they decided to sell a small number of shares held by PMSL in M&M.

However, the company reiterated that PMSL will continue to retain the status of M&M’s promoter group and that there is no intention to sell any further stake in the foreseeable future.

Based on the December quarter shareholding pattern, PMSL held an 11.64% stake in the company. All promoters and group entities combined hold a 19.32% stake in M&M.

At 11:17 am, the shares of M&M were trading 4.16% lower at Rs 1,888.60 on NSE.