Mahindra & Mahindra Financial Services Ltd board approves 1:1 rights issue at Rs. 50

The Board of directors of Mahindra & Mahindra Financial Services Limited had earlier approving a fund raising by the Company for an amount not exceeding Rs. 3,500 Crores (Rupees Three Thousand Five Hundred Crores), through a Rights Issue of its Equity Shares of face value of Rs. 2 each.

The Board of Directors, at its meeting held today, i.e., 18th July 2020 has approved the terms of the rights issue:

Instrument: Fully paid-up Equity Shares of face value of Rs. 2 each.

Total number of Equity Shares and Issue size: 61,77,64,960 fully paid-up Equity Shares of face value of Rs. 2 each, for an aggregate amount not exceeding Rs. 3,089 Crores (Rupees Three thousand eighty-nine Crores only).*

*assuming full subscription

Issue Price: Rs. 50 (Rupees Fifty only) per fully paid-up Equity Share (including a premium of Rs. 48 per fully paid-up Equity Share). The entire Issue Price will be payable at the time of making the application in the Issue.

Record date: The Board also fixed the record date for the purpose of determining the Shareholders of the Company who will be eligible to receive Rights Entitlements in the Issue, as 23rd July, 2020.

Rights Entitlement ratio: 1 (One) fully paid-up equity share for every 1 (One) fully paid-up equity share held by the eligible Equity Shareholders of the Company, as on the record date.

Issue period:

Issue Opening Date: Tuesday, 28th July, 2020 and
Issue Closing Date: Tuesday, 11th August, 2020

Outstanding Equity Shares:

Prior to the Issue: 61,77,64,960
Post the Issue: 123,55,29,920

Shares of MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. was last trading in BSE at Rs.207.9 as compared to the previous close of Rs. 201.7. The total number of shares traded during the day was 691902 in over 6939 trades.

The stock hit an intraday high of Rs. 208.55 and intraday low of 199.8. The net turnover during the day was Rs. 141305520.

Source : Equity Bulls

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