Mahindra & Mahindra Financial Service Ltd has raised Rs 867 crore through a Qualified Institutions Placement (QIP) issue which got subscribed five times.
The non banking finance company issued around 97.5 lakh equity shares at a price of Rs 889 apiece. According to the company the issue was priced at a premium of a 0.94 per cent to the market regulator SEBI's floor price of Rs 880.70 per share.
Following the announcement, the stock jumped 4.62 per cent on the Bombay Stock Exchange (BSE) to close at Rs 992.80 a share on Thursday. The stock hit a 52-week high of Rs 1,024.65 a share in intra-day trade.
Mahindra & Mahindra Financial Services Ltd's QIP managed to get good response despite current uncertain economic conditions.
Mr. Bharat Doshi, Chairman of the company, said that the high level of interest shown by institutional investors amid tough economic conditions reflected their confidence in the company's unswerving record of good performance.
Mahindra & Mahindra Financial Service Ltd said that it would utilize the funds to enhance long-term resources by leveraging available business opportunities, improving tier-I capital base, and providing funding for loans to its customers.
Kotak Mahindra Capital Co, Citigroup Global Markets India, Deutsche Equities India, HSBC Securities, and JM Financial Institutional Securities were among the financial institutions that acted as book-running lead managers for the QIP.
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