M&M Financial Services To Raise Rs 3,000 Crore Via Rights Issue
M&M Financial Services' share price rose as much as 3.93% to Rs 286.9 during the day.
Mahindra and Mahindra Financial Services Ltd. approved raising up to Rs Rs 3,000 crore via rights issue, according to an exchange filing on Thursday.
The board on Feb. 13 approved fundraising by way of offer and issuance of fully paid-up equity shares of face value of Rs 2 apiece, for an amount not exceeding Rs 3,000 crore via rights issue, the statement said.
The company's board or the rights issue committee will decide the terms and conditions of the rights issue, the exchange filing said.
A sharp fall in provisions and healthy growth in loan book helped M&M Financial Services to report a 63% year-on-year rise in net profit for the quarter that ended December at Rs 899 crore. Impairment on financial instruments plummeted by 97% on year to Rs 9.14 crore.
The asset quality worsened for the non-bank lender with stage 3 assets at 3.9% in December end as against 3.83% a quarter ago. Net stage 3 assets also rose to 2.0% against 1.59% a quarter ago.
M&M Financial Services' share price rose as much as 3.93% to Rs 286.9 during the day. It was trading 1.85% higher at Rs 281.1 apiece as of 11:44 a.m., as compared to a 0.75% advance in the NSE Nifty 50 index.
The stock declined 1.12% in 12 months. The relative strength index was at 51.
Seventeen out of the 36 analysts tracking the company maintain a 'buy' rating, 13 have hold, and six suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 6%.
