MMFSL Rights Issue to raise up to INR 3,000 Crore of primary capital

The Board of Directors of Mahindra & Mahindra Financial Services Limited (MMFSL), a leading provider of financial services in Emerging India, had on 13th February 2025 approved fund raise of up to INR 3,000 Crore by way of Rights Issue to eligible shareholders of the Company. Subsequent, SEBI has issued SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2025 wherein it has considerably simplified the Rights issue process thereby making it time, process and cost efficient. Accordingly, to avail benefits of the same, the Board of Directors of MMFSL at its meeting held today have passed a fresh resolution to approve fund raise of up to INR 3,000 Crore by way of Rights Issue under the simplified rights issue process.

Key Points:

- MMFSL has demonstrated strong growth in its Secured Asset portfolio (AUM CAGR 20%*).

- The business remains committed to asset quality as demonstrated by its GS3 staying below 4% throughout F25. Consequently, Credit Cost also have been below 2%.

- As MMFSL looks towards the future, it sees tremendous growth opportunity tied to India's domestic consumption growth.

- As a leading AAA rated NBFC financier for Emerging India, MMFSL expects to benefit from India's growth through its well-diversified product offering.

- In line with its philosophy of high-quality Asset growth backed by a strong balance sheet, MMFSL is planning a Rights Issue of up to INR 3,000 Crore to augment its Tier 1 capital.

- This Capital raise will enhance Tier 1 Capital by more than 200 bps enabling Company's growth aspirations for next few years.

Shares of Mahindra & Mahindra Financial Services Limited was last trading in BSE at Rs. 262.05 as compared to the previous close of Rs. 261.55. The total number of shares traded during the day was 57399 in over 957 trades.

The stock hit an intraday high of Rs. 264.70 and intraday low of 260.30. The net turnover during the day was Rs. 15057994.00.

*Note: last 24 months

Source : Equity Bulls

Keywords

MahindraandMahindraFinancialServices INE774D01024 NBFC FundRaising RightsIssue