Mahindra & Mahindra (M&M) announced that the company has allotted 52,00,000 ordinary equity shares of Rs 5 each to the trustees of M&M employees stock option trust under the employee stock option scheme-2010.

The aforesaid 52,00,000 ordinary equity shares rank pari passu in all respects with the existing ordinary equity shares of the company including dividend.

The stock had underperformed the market over the past one month till Sep. 01, 2014, falling 4.59% compared with the Sensex's 5.44% rise. It underperformed the market in past one quarter, gaining 6.97% as against 10.94% rise in the Sensex.

Shares of the company declined Rs 7.55, or 0.54%, to settle at Rs 1,396.25. The total volume of shares traded was 39,117 at the BSE (Tuesday).