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Mahindra & Mahindra Financial Services Surge 12% On First Quarter Profits, Rights Issue

Mahindra & Mahindra Financial Services shares rose 12 per cent on Monday

Shares of Mahindra and Mahindra Financial Services shot up more than 12 per cent in Monday’s morning trade on back of impressive first quarter results of the non-banking finance company (NBFC). The stock rose 12.38 per cent to hit an intra-day high of Rs 233.65.

On Saturday, the company reported that its consolidated profit after tax stood at Rs 432 crore during the first quarter, as against Rs 108 crore during the same period last year, showing a growth of 300 per cent on a year-on-year basis. Total consolidated income increased by 8 per cent at Rs 3,069 crore during the quarter ended June 30, 2020, as against Rs 2,838 crore during the corresponding quarter last year.

The board of the NBFC also notified the exchanges about conditions of a rights issue that had been approved on 1 June. The company aims to raise Rs 3,500 crore through a rights issue of its equity shares of the face value of Rs 2 each. The issue has been fixed as Rs 50 per fully paid-up equity share, including a premium of Rs 48 per fully paid-up equity share. The issue opening date is July 28, 2020, and the closing date is August 11, 2020.

At 1 pm, the stock had pared some of its gains with the shares priced at Rs 226.40 apiece, up 8.90 per cent. The broader market was also trading in the green with BSE Sensex up 0.75 per cent.

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