Mahindra & Mahindra Financial Services Limited (MMFSL), a listed subsidiary of Mahindra & Mahindra Limited, has announced a major equity fundraising plan. On Thursday, May 8, 2025, MMFSL informed the stock exchanges that its Board has given the green light for a rights issue of equity shares, aiming to raise up to ₹2996 crores, assuming full subscription.
This move is designed to strengthen the company’s capital base and support its long-term growth strategy in India's expanding financial services market.
Rights issue details
According to the regulatory filing, Mahindra Finance will offer fully paid-up equity shares with a face value of ₹2 each. These shares will be issued at ₹194 per share, comprising a premium of ₹192 and a face value of ₹2.
Investors will need to pay the full issue price at the time of application, making the process straightforward. Through this rights issue, existing shareholders have the opportunity to enhance their holdings at a value price compared to current market levels.
The proceeds from the rights issue are expected to bolster MMFSL’s capital adequacy, fund its core lending business, and strengthen its rural and semi-urban financial initiatives.
Strategic benefits for Mahindra Finance
The ₹2996 crores rights issue marks a key step in Mahindra Finance’s efforts to scale its operations sustainably. By boosting its capital reserves, the company will be better positioned to meet growing demand for vehicle financing, small business loans, and rural housing finance.
At a time when financial institutions are focusing on capital strength to meet regulatory expectations and future expansion plans, MMFSL’s move reflects foresight. The additional capital will also enable investments in digital technologies and innovation, enhancing operational efficiencies and customer experience.
This initiative highlights Mahindra & Mahindra’s continued support for its financial services arm, underlining confidence in its long-term potential in India’s competitive lending space.
Strengthening Mahindra Finance’s future growth path
Mahindra Finance has approved a ₹2996 crores rights issue, offering fully paid equity shares at ₹194 each. The initiative will fortify the company’s capital structure, fund expansion into rural and semi-urban lending markets, and position it strongly for future growth in the financial services sector.
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