Overwhelming Response to Mahindra Finance Rights Issue

Mahindra & Mahindra Financial Services Limited ("Mahindra Finance" or "Company"), one of the leading deposit taking non-banking finance companies in India, announced the successful closure of its fast track Rights Issue to raise Rs. 3088.82 crores ("Rights Issue"). The Rights Issue was subscribed approximately 1.3 times, resulting in a demand generation of over Rs. 4000 crores*.

On the success of the Rights Issue, Mr. Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance said "We are greatly encouraged by the response from our shareholders and thank them for the faith they have entrusted in us. The success of the Rights Issue will enable us to capitalise on the growth opportunities that lie ahead with increased vigour, and continue with our mission to drive financial inclusion in rural and semi-urban geographies."

The Rights Issue saw significant investor interest, including from small investors and institutional investors, both Indian and foreign. The allotment of equity shares offered pursuant to the Rights Issue will happen on or about August 21, 2020 and such equity shares are expected to be listed on the BSE Limited and National Stock Exchange of India Limited on or about August 27, 2020.

Kotak Mahindra Capital Company Limited, Axis Capital Limited, BNP Paribas, Citigroup Global Markets Private Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited acted as the lead managers to the Rights Issue.

Shares of MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. was last trading in BSE at Rs.132.7 as compared to the previous close of Rs. 132.2. The total number of shares traded during the day was 534553 in over 6666 trades.

The stock hit an intraday high of Rs. 134.9 and intraday low of 130.45. The net turnover during the day was Rs. 71146870.

*Based on bid data from exchanges prior to technical rejections and is subject to finalization of basis of allotment and technical rejections

Source : Equity Bulls

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