The rights issue
will open on July 28 and close on August 11, 2020. The full amount of the issue price of Rs 50 per share will be payable on application.
Mahindra & Mahindra (M&M), the promoter of the company informed the stock exchanges that the loans and investment committee of the Company has approved to subscribe to the equity shares of M&M Financial Services to the full extent of the Company’s rights entitlement.
The board also approved to subscribe to additional shares as well as to any unsubscribed portion of the rights issue, up to the total Issue size of M&M Financial Services subject to compliance of applicable laws including the minimum public shareholding requirements, it said.
In the past two months, the stock of M&M Financial Services has outperformed the market by surging 78 per cent, as compared to a 23.4 per cent rise in the S&P BSE Sensex.
At 10:04 am, the stock was trading 8 per cent higher at Rs 150 on the BSE, against 0.19 per cent gain in the benchmark index. A combined around 34 million equity shares changing hands on the counter on the NSE and BSE.