Mahindra & Mahindra Financial Services raises Rs 3,089 cr

Mahindra & Mahindra Financial Services, a non-banking financial arm of Mahindra Group, on Wednesday said it has raised Rs 3,088.82 crore through a rights issue which was oversubscribed. The issue, which opened for subscription on July 28, was subscribed approximately 1.3 times, resulting in a demand generation of over Rs 4,000 crore, Mahindra & Mahindra Financial Services said in a statement.

The rights issue of the deposit taking non-banking finance company closed on Tuesday. The success of the rights issue will enable the company to capitalise on the growth opportunities that lie ahead with increased vigour, and continue with the mission to drive financial inclusion in rural and semi-urban geographies, it said.

The rights issue saw investor interest, including from small investors and institutional investors, both Indian and foreign, it said.

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The allotment of equity shares offered pursuant to the rights issue will happen on or about August 21 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, it added.

The funds raised through the issue will be used to repay/prepay certain outstanding borrowings of the company, augment long-term capital and resources for meeting funding requirements for the company's business activities and for general corporate purposes.

In the quarter ended June, it 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.