The rights issue of Rs 3,089 crore by Mahindra & Mahindra Financial Services (Mahindra Finance) was subscribed approximately 1.3 times on Wednesday, with significant demand from both domestic and foreign investors. The fund raised by the equity share will help the company to repay its existing debt and to bolster capital reserves for dealing with the disruptions caused by the COVID-19 pandemic and taking advantages of the upcoming opportunities, arising out of the pandemic.
Ramesh Iyer, Vice-Chairman & Managing Director of Mahindra & Mahindra Financial Services said, “The success of the rights issue will enable us to capitalise on the growth opportunities that lie ahead with increased vigour, and continue with our mission to drive financial inclusion in rural and semi-urban geographies.”
The opened date for the subscription of the rights issue of the Non-Banking Finance Company(NBFC) was from 28, July to 11, August. Company has seen a demand of over Rs 4,000 crore but the offered size of shares was worth Rs. 3,088.82. Kotak Mahindra Capital, Axis Capital, BNP Paribas were the Investment Banks for advising the lender on the rights issue. The company said the allotment of the equity shares will be offered on or about 21, August and the equity shares are expected to listed on BSE and NSE on 27, August.