Mahindra Financial to issue shares at Rs 380

Mahindra & Mahindra Financial Services Ltd has announced that the Board of Directors of the Company at its meeting held on January 18, 2008, inter alia, has subject to the approval of the shareholders approved the issuance of 1,09,00,000 Equity Shares on a preferential basis at a price of Rs 380/- per share (inclusive of Share premium of Rs 370/- per share) aggregating Rs 414.20 crores.

The shares would be allotted to the investors TPG-Axon (Mauritius) II, Ltd - 70,00,000 No of equity shares, Standard Chartered Private Equity (Mauritius) Ltd - 39,00,000 No of equity shares.

This capital is being raised in order to augment the long term resources by way of enhancing the Tier I capital base, provide funding for loans to the customers of the Company, to invest in subsidiaries to the extent permitted and for general corporate purposes.

Increase in the Authorised Capital of the Company from Rs 140 Crores to Rs 160 Crores and consequential amendments in the Memorandum and Articles of Association of the Company.

The Board has also decided to convene an Extraordinary General Meeting (EGM) on February 19, 2008 to seek approval of the Members for the above matters.

Source : Equity Bulls

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