Mahindra Finance Sets Issue Price For Rs 3,000-Crore Rights Issue
M&M Finance has set May 14 as the record date for determining the shareholders who will be eligible to receive the Rights Entitlement.
Mahindra & Mahindra Financial Services Ltd. on Thursday announced the issue price for its rights issue to raise nearly Rs 3,000 crore.
The board approved a plan to float 15.44 crore fully paid-up equity shares of a face value of Rs 2 each, for an aggregate amount not exceeding Rs 2,996 crore, according to a stock exchange filing.
The issue price has been set at Rs 194 apiece. The entire issue price will be payable at the time of making the application in the rights issue.
Mahindra Finance has set May 14 as the record date for determining the shareholders who will be eligible to receive the Rights Entitlement or RE.
The rights issue will open for subscription on May 22 and close on June 6. The board can extend the issue closing date up to 30 days.
The RE ratio is one rights equity share for every eight fully paid-up equity shares held by the eligible equity shareholders as on the record date.
RE holders can apply for rights issue or renounce the REs in full or in part. The renunciation can be done using the secondary market platform of the stock exchanges or through an off-market transfer within prescribed timelines.
To receive an allotment of rights equity shares, RE holders are required to make the application on or before the issue closing date by paying the full application amount.
Mahindra Finance, a non-bank lender, reported a 9% fall in standalone net profit to Rs 563 crore for the quarter ended March of fiscal 2025 compared to Rs 619 crore profit recorded in the same period last year.
For fiscal 2025, the company's post-tax profit surged 33% to Rs 2,345 crore, compared to Rs 1,760 crore in fiscal 2024.
Its core net interest income grew to Rs 2,156 crore, denoting a 9% rise driven by a 17% surge in the loan book. The company's interest margin narrowed to 6.5% from 7.1% last year.
Disbursements rose 2% during the quarter, while provisions or credit costs increased 34% to Rs 457 crore, up from Rs 341 crore last year, impacting the bottom line.
Shares of Mahindra Finance ended 2.35% lower at Rs 255.15 apiece on the BSE, ahead of the announcement, compared to a 0.5% decline in the benchmark Sensex.
