Mahindra & Mahindra Financial Services share price jumped over 4 percent intraday on July 28 as the rights issue of Rs 3,088.8 crore opens today.
The company will issue 61.78 crore equity shares of face value of Rs 2 each at a price of Rs 50 per equity share aggregating to Rs 3,088.82 crore on a rights basis, a company release said.
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.
The stock price was trading at Rs 135.00, up Rs 6.15, or 4.77 percent at 10:01 hours. It has touched an intraday high of Rs 135.50 and an intraday low of Rs 129. The stock was also one of the most active shares on NSE in terms of volumes with 1,13,24,284 scrips being traded.
"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.
According to Moneycontrol SWOT Analysis powered by Trendlyne, M&M Financial has zero promoter pledge with growth in net profit and increasing profit margin (QoQ).
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