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M&M Financial to raise Rs 570cr via QIB route

30 Nov 2010 Evaluate

Mahindra & Mahindra (M&M) Financial Services decided to raise up to Rs 570 crore through institutional placement of equities to increase authorised capital to Rs 190 crore and expand business.

The company has approved raising funds by issue of equity shares for an aggregate amount not exceeding Rs 570 crore by way of a qualified institutions placement to qualified institutional buyers. The capital is to be raised to augment the company's long term resources by enhancing capital base, besides leveraging business opportunities, provide funding for loans to its customers and for general corporate purposes.

The company has also approved increasing the authorised capital of M&M Financial Services to Rs 190 crore, from the current Rs 160 crore. It gave a nod to increase the limit for investments by foreign institutional investors in the company to 49 per cent of equity from the existing 35 per cent.crackcrack

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