Mahindra & Mahindra Financial Services share price rose 9 percent in early trade on July 20 after the company posted robust numbers for the quarter ended June 2020 and the board of the company approved rights issue.
The board of directors of Mahindra & Mahindra Financial Services on July 18 approved the conditions of an earlier-approved rights issue of fully paid-up equity shares of the face value of Rs 2 each.
The board of the company, on June 1, 2020, had approved fundraising by the company for an amount not exceeding Rs 3,500 crore, through a rights issue of its equity shares of the face value of Rs 2 each.
On July 18, the board approved the rights issue instrument for a total number of equity shares and issue size of 61,77,64,960, fully paid-up equity shares of the face value of Rs 2 each, for an aggregate amount not exceeding Rs 3,089 crore.
The issue has been fixed as Rs 50 per fully paid-up equity share, including a premium of Rs 48 per fully paid-up equity share. The entire issue price will be payable at the time of making the application in the issue, the company said.
The issue opening date is July 28, 2020, and the closing date is August 11, 2020.
The board has fixed the record date for the purpose of determining the shareholders of the company who will be eligible to receive rights entitlements in the issue, as of July 23, 2020.
The company has fixed the rights entitlement ratio as one fully paid-up equity share for every one fully paid-up equity share held by the eligible equity shareholders of the company, as on the record date.
Also, the company reported its consolidated profit after tax (PAT) of Rs 432 crore during the quarter ended June 30, 2020, as against Rs 108 crore during the corresponding quarter last year, registering a growth of 300 percent over the same period the previous year.
Total consolidated income increased by 8 percent at Rs 3,069 crore during the quarter ended June 30, 2020, as against Rs 2,838 crore during the corresponding quarter last year.
The standalone assets under management (AUM) stood at Rs 81,436 crore as on June 30, 2020, as against Rs 71,406 crore as on corresponding reporting date last year, registering a growth of 14 percent, the company said.
At 09:27 hrs, Mahindra & Mahindra Financial Services was quoting at Rs 207.75, down Rs 0.15, or 0.07 percent on the BSE.
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