Mahindra & Mahindra Financial Services raises Rs. 426 crore

Mahindra & Mahindra Financial Services raises Rs. 426 croreMahindra & Mahindra Financial Services has announced that company has raised Rs. 426.2 crore from Institutional investors. Company said in a release that it has allotted 61,33,205 shares to qualified investors.

Leading vehicle loan provider M&M Financial sold shares under its qualified institutional placement (QIP). In a filing to the BSE, M&M Financial Service revealed the details of this placement. Two major Foreign institutional investors (FIIs), Fidelity and Prudential Asset Management, Singapore bought major stake in the issue.

Company said in the filing that now number of paid up shares of the company amount to 10.40 crore as opposed to previous 9.78 crore. Mahindra and Mahindra Financial Service said that now stake of promoter company Mahindra & Mahindra Ltd is 56% which was 59.51% before allotment of shares.

This allotment also led to reduction in stake of Mahindra & Mahindra Financial Services Ltd. Employees Stock Option Trust from 1.58% to 1.49%. Company said about the usage of funds, "The funds raised will be effectively deployed to augment the long term resources by way of enhancing the tier-I capital base, leverage the available business opportunities, provide funding for loans to the company's customers and for general corporate purposes."

Company's managing director, Ramesh G Iyer elaborated in an interview about the profit of the company. He said their business model is the key behind their success. The company has recorded hefty profit in first three quarters of current financial year. The remarkable performance helped the company fetch good price for its shares from FIIs.