Mahindra & Mahindra Financial Services Ltd has fixed the issue price for its upcoming rights offering at ₹194 per share. The board approved the issue of 15.44 crore fully paid-up equity shares with a face value of ₹2 each, aiming to raise a total of ₹2,996.16 crore. The entire issue amount will be payable at the time of application.
As of 9:07 AM on May 9, 2025, Mahindra & Mahindra Financial Services share price was trading at ₹251.85, a 1.18% decrease; the stock has declined 2.23% over the past month and 6.58% over the past six months.
The record date for identifying eligible shareholders is May 14, 2025. The rights issue will open on May 22 and close on June 6. Shareholders can trade their rights entitlements (REs) on the stock exchange until June 3 or carry out off-market renunciations until June 5.
Eligible shareholders will receive one rights share for every eight fully paid-up equity shares held as of the record date. The rights entitlements can be used to apply for the new shares or transferred, either on-market or off-market, within the prescribed time.
If fully subscribed, the total number of outstanding shares will increase from approximately 123.55 crore to 139 crore shares, all with a face value of ₹2 each.
Read more: Mahindra Group Companies to Raise Funds Worth ₹4,500 Crore via Rights Issues!
The company's profit after tax for FY25 rose 33% year-on-year to ₹2,345 crore. Net interest income increased 9% to ₹2,156 crore, supported by a 17% expansion in the loan book. However, the net interest margin declined to 6.5% from 7.1% the previous year.
In the quarter ended March 2025, Mahindra Finance reported a standalone net profit of ₹563 crore, down 9% from ₹619 crore a year earlier. Provisions rose 34% to ₹457 crore, from ₹341 crore in the same quarter last year. Disbursements grew by 2% during the quarter.
The rights issue will open on May 22, offering shareholders a fixed price entry for additional equity, subject to terms outlined by the company with a 1:8 entitlement ratio for eligible shareholders.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 9, 2025, 2:42 PM IST
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