Mahindra & Mahindra (M&M) Benefit Trust sold 1.92 crore shares in M&M Ltd to Canada's institutional investor CDPQ on the BSE for Rs 1,244 crore.
In a regulatory filing, M&M said, "The M&M Benefit Trust was created in July 2008 for the exclusive benefit of Mahindra & Mahindra Limited. The shares held by the trust were the outcome of various mergers and schemes of amalgamation. The trust held 10.36 crore shares of Mahindra & Mahindra."
It further said that the proceeds of the sale will be transferred to M&M and used by the company for various operational requirements.
The trust now holds 8.44 crore shares in the company, representing 6.8 of its equity capital.
CDPQ (Caisse de dépôt et placement du Québec) is an institutional investor based in Quebec, Canada, that manages funds for several public and para-public organisations, mainly pension and insurance plans. Formed in 1965, it is the second largest pension fund in Canada with investments worth over CAD 309.5 billion in 60 countries.
Shares of Mahindra & Mahindra were trading 1.14 percent higher at Rs 654.45 at 3.19 pm on Monday.