Mahindra Finance to raise Rs1,055cr from the promoter through preferential issue
Mahindra Finance, through its filing on BSE, has informed that the Securities Issue Committee of the company has approved the issuance of equity shares on preferential basis to Mahindra & Mahindra Limited after receiving board approval on November 1, 2017, and shareholder’s approval at Extraordinary General Meeting held on November 29, 2017.
The committee approved the issuance of 2.5 crore equity shares of face value of Rs2 each at a price of Rs422 per equity share aggregating to Rs1,055crores to Mahindra & Mahindra Ltd (the Promoter).
The shareholders also approved the resolution for further issue of securities of the company through Qualified Institutions Placement (QIP).
The funds raising plan of the company will help the company to further increase its lending capability and ensure earnings visibility for the future. Although this will also cause dilution in the earnings for the current financial year to some extent.
The stock ended at a price of Rs449.80, up by 1% on November 29, 2017. The promoters of the company hold 51.20% stake as on September 30, 2017.
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Via:: Stock – India Infoline