During Friday’s trading session, shares of one of India’s leading non-banking finance companies and a part of the Mahindra Group fell by 4.3 percent on BSE, after the company’s Board approved rights issue worth Rs 2,996.2 crores in a 1:8 ratio.
With a market capitalisation of Rs. 30,301.3 crores, at 12:13 p.m., the shares of Mahindra & Mahindra Financial Services Limited were trading in the red at Rs. 245.25 on BSE, down by nearly 4 percent, as against its previous closing price of Rs. 255.15. The stock has delivered negative returns of around 2.5 percent in one year, and fell by over 4 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, the Board of Mahindra & Mahindra Financial Services Limited, in its meeting held on 8th May, approved the Letter of Offer for the company’s upcoming Rights Issue, with the record date set on 14th May 2025.
The Board has approved a rights issue of 15.44 crores fully paid-up equity shares (face value of Rs. 2 each), aggregating to nearly Rs. 2,996.2 crores at a fixed issue price of Rs. 194 per share, representing a discount of around 21 percent from the current price levels. The eligible shareholders will be entitled to 1 rights equity share for every 8 shares held as on the record date.
The Rights Issue will open on Thursday, 22nd May 2025, and close on Friday, 6th June 2025. The date of allotment is scheduled for Monday, 9th June, and the date of listing is Wednesday, 11th June.
Financial Performance
M&M Financial Services reported a significant growth in its revenue from operations, showing a year-on-year rise of around 14 percent from Rs. 4,280 crores in Q4 FY24 to Rs. 4,886 crores in Q4 FY25. In contrast, its net profit decreased during the same period from Rs. 671 crores to Rs. 456 crores, representing a decline of around 32 percent YoY.
About the Company
Mahindra & Mahindra Financial Services Limited is a Non-Banking Financial Company (NBFC) primarily engaged in financing new and pre-owned auto, utility vehicles, tractors, passenger cars and commercial vehicles through its pan-India branch network. It has a diversified lending portfolio across retail, small and medium enterprises and commercial customers.
Written by Shivani Singh
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