Latest News | Mahindra Finance Rs 3,088.82 Cr Rights Issue to Open on Tuesday

Mumbai, Jul 27 (PTI) Non-banking financial company Mahindra Finance on Monday said its Rs 3,088.82 crore rights issue will open for subscription on July 28.

The company will issue 61.78 crore equity shares of face value of Rs 2 each (equity shares) at a price of Rs 50 per equity share aggregating to Rs 3,088.82 crore on a rights basis, a company release said.

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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, it said.

The rights issue will close on August 11, 2020.

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"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," the release said.

The lead managers to the issue include Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup Global Markets and SBI Capital Markets among others.

The company provides financing for new and pre-owned auto and utility vehicles (including three wheelers), tractors, cars and commercial vehicles and has customers primarily in the rural and semi-urban markets of the country.

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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)