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Mahindra Finance Rs 3,088.82 crore rights issue open on July 28

Mahindra Finance Rs 3,088.82 crore rights issue to open on July 28

The Non-banking financial company Mahindra finance on Monday declared its Rs 3,088.82 crore rights issue will open for

Mahindra Finance Rs 3,088.82 crore rights issue to open on July 28

subscription on July 28.

 

The equity shares will be offered in the ratio of one equity share for every one equity share held by the eligible equity shareholders of the company as on the record date, that is July 23, 2020,  the company release said.

The Company will issue 617,764,960 fully paid-up Equity Shares of face value of Rs. 2 each for cash at a price of Rs. 50 per Equity Share (including a premium of Rs. 48 per Equity Share) aggregating to Rs. 30,888,248,000 on a rights basis to eligible equity shareholders in the ratio of one Equity Share for every one fully paid-up Equity Share held on the record date, that is
July 23, 2020. The rights issue will close on August 11, 2020.

The funds that will be raised through the issue will be used to repay/prepay certain outstanding borrowings of the company, elevate long term capital and resources for meeting funding requirements for the company’s business activities and general corporate purposes, the company said in a statement.

In the quarter ended June, the company reported a standalone net profit of Rs 156 crore as against Rs 68 crore in the same quarter of last year.

During the quarter, its gross NPA (stage 3) stood at 9.19 per cent as against 8.17 per cent. Net NPA (stage 3) was at 5.72 per cent, against 6.27 per cent last year. Mahindra Finance is primarily engaged in providing financing for new and pre-owned auto and utility vehicles (including three-wheelers), tractors, cars and commercial vehicles and have customers primarily in the rural and semi-urban markets of India.

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 are appointed as the lead managers to the
Rights Issue.

 

 

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Oishika is a management student with a curious enthusiasm for MBTI and classic literature. She's a capable leader, although she doesn't choose to lead unless she has to. She is an obsessive reader and an impulsive writer which can get intense on occasion. She is currently creating content at TIW.

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