Mahindra & Mahindra Financial Services received an overwhelming response for its qualified institutional placement (QIP) issue which getting oversubscribed by 5 times, raised Rs 867 crore, thereby making the issue one of the most successful share sales in recent times.
Finance arm of auto major M&M issued 97,50,257 equity shares at Rs 889 a share, at par with its market price of November 7, which was the launch date of the issue. The market regulator had set a floor price of Rs 880.70 per share.
The capital infusion, which takes the Tier-I capital adequacy to over 20% from the earlier 14%, is expected to suffice the company for the next two years. Meanwhile, the promoter holding in the company gets reduced to 51.2% post-issue from the earlier levels of over 56%.
MMFSL is a subsidiary of Mahindra & Mahindra (M&M). It provides finance for purchase of utility vehicles (UV), tractors and cars, two/ three-wheeler, refinance, commercial vehicle, construction equipments and home loans.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 918.55 |
| Shriram Finance | 1045.05 |
| Aditya Birla Capital | 340.00 |
| Chola Invest & Fin. | 1561.10 |
| Tata Capital | 335.25 |
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