Shares of Mahindra’s CIE Automotive Ltd surged nearly 8% on Wednesday, with about 12.2 million shares, or a 3.2% stake in the company, changing hands in heavy trading, according to Bloomberg. However, the details of the buyer and seller are not yet known.

Mahindra CIE’s share price hit a high of Rs 493 per share. The stock traded at Rs 476 on the BSE at 9:30 am, up 5% from its previous close, while India’s benchmark Sensex fell 0.3% to 61,794. Meanwhile, M&M shares fell 0.3% to Rs 1,265 per share.

On May 23, CNBC television reported that Mahindra & Mahindra is likely to sell its 3.2% stake, or 1.2 million shares, in auto parts supplier Mahindra CIE Automotive Ltd in a block deal soon. M&M’s stake in the company will be reduced to zero upon completion of the transaction.

The deal is expected to be 5-6% below the current market price (CMP). Shares of Mahindra CIE were up 0.4% at Rs 453.20 per share at the close on BSE on Tuesday, compared to the previous session.

In March this year, Mahindra & Mahindra sold a 6.05% stake representing 2,288,000 shares in Mahindra CIE Automotive in a block deal. The company sold shares at a total price of Rs 357.39 each, representing a discount of almost 11% from the last closing price. Following the sale, Mahindra & Mahindra’s stake in Mahindra CIE Automotive fell from 9.25% to 3.19%.

For the quarter ended December 2022, Mahindra CIE posted a consolidated net loss of Rs 657.8 crore. In the same period last year, the company reported a consolidated net profit of Rs 80.2 crore. Operating income rose to Rs 2,246.8 crore in the quarter compared to Rs 1,669.2 crore in the same period last year.