M&M Financial gains 12% on 1:1 rights issues at Rs 50 per share
Published On: Monday, July 20, 2020 | By: Team KnowMyStock
Shares of Mahindra & Mahindra Financial Services (MMFSL) were up 12 per cent to Rs 234 in the intra-day trade on the BSE on Monday after the company said its board approved a 1:1 rights issue at Rs 50 per share, amounting to Rs 3,089 crore. The issue will open on July 28 and close on August 11, it said in a regulatory filing. The record date for the same is July 23, 2020. The company has fixed the rights entitlement ratio as one fully paid-up equity share for every one fully paid-up equity share held by the eligible equity shareholders of the company, as on the record date. The issue size would consist of 61.77 crores fully paid-up equity shares of the face value of ₹2 each, for an aggregate amount not exceeding ₹3,089 crores. It would be priced at ₹50 per share, including a premium of ₹48 per share. The entire issue price will be payable at the time of making the application in the issue, the company said.
Meanwhile, MMFSL reported a profit after tax (PAT) of Rs 159 crore, up 128 per cent against Rs 684 crore in the year-ago quarter.Total consolidated income increased by 8 percent at Rs 3,069 crore during the quarter ended June 30, 2020, as against Rs 2,838 crore during the corresponding quarter last year.
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