Mahindra Finance raises Rs 3,089 crore through rights issue

Mahindra & Mahindra Financial Services (Mahindra Finance) has raised Rs 3,089 crore by issuing equity shares to existing investors.

The board of directors of the company had earlier on June 1, 2020 approved issuance of equity shares by way of rights issue to eligible equity shareholders of the company for an aggregate amount not exceeding Rs 3,089 crore.

"In relation to the aforesaid issue...the Rights Issue Committee, at its meeting held on August 17th, 2020 considered and approved the allotment of 61,77,64,960 equity shares at a price of Rs 50 per equity share (including a premium of Rs 48 per equity share)," Mahindra Finance has said in a regulatory filing.

A rights issue involves offering additional shares to existing shareholders in proportion to their existing holdings.

Pursuant to the allotment, the paid-up equity share capital of the company stands increased from 61,77,64,960 equity shares to 123,55,29,920 equity shares, it said.

Further, the percentage of shareholding of Mahindra & Mahindra Limited, holding company (promoter), stands increased from 51.19 percent to 52.16 per cent, it added.

Shares of Mahindra Finance closed 2.18 percent up at Rs 136.15 apiece on the BSE.