Mahindra & Mahindra Financial Services Limited (MMFSL) announced today that its Board of Directors has approved a rights issue to raise up to ₹3,000 crore of primary capital. The decision was made during a board meeting held on February 13, 2025.
The shares of Mahindra & Mahindra Limited were trading at ₹2,976.55, down by ₹10.65 or 0.36 per cent on the NSE at 3:15 pm and those of Mahindra & Mahindra Financial Services Limited were trading at ₹282.65, up by ₹6.60 or 2.39 per cent.
The rights issue will offer fully paid-up equity shares of face value ₹2 each to eligible shareholders, with the record date to be determined later. According to the company, the fund-raising is primarily intended to maintain a strong capital adequacy ratio to support its growth plans.
This capital infusion is expected to enhance MMFSL’s Tier 1 capital by more than 200 basis points, enabling the company’s growth aspirations for the next few years. The company has reported a 21 per cent CAGR in its secured asset portfolio over the past 21 months while maintaining gross stage 3 assets below 4 per cent throughout fiscal year 2025.
As a leading AAA-rated NBFC with over 10 million customers and assets under management exceeding USD 13.7 billion, MMFSL sees significant growth opportunities tied to India’s domestic consumption. The company operates through 1,375 offices reaching customers across 480,000 villages and 8,000 towns in India.
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