Investing ₹10,000 In This Zerodha Broking Backed Midcap Stock A Year Ago, Would Have Doubled Your Money

RBL Bank has piqued interest over the past week as Mahindra Group‘s plans to buy a close to 10% stake in the lender made headlines. The stock even went on to hit a new 52-week high of ₹251.40, however, the shares of the company fell sharply after it issued a clarification that no such negotiations were underway.

The Investment: On 28th July 2022, RBL Bank was trading at ₹92.25. Fast forward to today, the stock is valued at ₹230. This means that an investment of ₹10,000 would have bought approximately 108 shares a year ago. Today, those 108 shares would be worth approximately ₹24,840, marking a substantial increase in value.

Background: The private lender’s stock surged over 5% to hit a new 52-week high of ₹251.40 after several media reports stated that the Mahindra Group had acquired close to a 5% stake in the Zerodha Broking-backed stock. As per the latest shareholding data, Zerodha Broking owns a 1.26% stake in the company.

However, the bank issued a clarification earlier today (July 27) stating that there were no such negotiations going on. The bank further added that any shareholder who wishes to acquire 5% or more of the shareholding of the bank is required to make an application to the Reserve Bank of India to seek prior approval for such acquisition.

As of the date of the clarification, no such application had been received. The bank confirmed that the holding of Mahindra & Mahindra Limited as of July 21, 2023, was 3.53% of the total paid-up share capital of the bank.

Price Action: RBL Bank’s share price was down 3.26% to trade at ₹231.40 in the late hours of trading on Thursday.

Read Next: This Midcap Stock Made Mukul Agrawal ₹11 Cr Richer Today

Disclaimer: This article is for educational purposes alone and does not constitute financial advice.

Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Posted In: EducationGeneralMahindra & MahindraRBL Bank

Loading...