Mahindra Finance Board approves Issue of Equity Shares through QIP and Preferential Issue to M&M

The Board of Directors of Mahindra & Mahindra Financial Services Limited ("Mahindra Finance"), a leading provider of financial services in the rural and semi-urban markets, has subject to approval from the shareholders, approved the issue of equity shares through the Qualified Institutions Placement ("QIP") route for upto 2.4 crores equity shares / securities convertible into equity shares and a preferential issue to Mahindra & Mahindra Limited ("M&M") for upto 2.5 crores equity shares.

The pricing for the same shall be in compliance with the pricing formula under SEBI regulations.

Issuance of shares under QIP will enable the Company in diversifying its investor base. With investment by M&M through the preferential issue, Mahindra Finance shall continue to remain a subsidiary of M&M and effectively leverage the strategic and financial synergies.

The capital to be raised shall be used for business growth and funding requirements, investment in its subsidiaries and joint venture, strengthening its capital adequacy and for general corporate purposes.

Shares of MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. was last trading in BSE at Rs.435.9 as compared to the previous close of Rs. 431.3. The total number of shares traded during the day was 137409 in over 1994 trades.

The stock hit an intraday high of Rs. 441 and intraday low of 430.7. The net turnover during the day was Rs. 59993041.

Source : Equity Bulls

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