PremiumThe fundraise will help the company repay existing debt and to bolster its capital reserves to deal with disruptions caused by the covid-19 pandemic as well as to take advantage of the opportunities arising out of the pandemic
The Rs3,089 crore rights issue of Mahindra & Mahindra Financial Services (Mahindra Finance) was subscribed 1.3 times on Wednesday, the final day of the share sale, the company said in a statement.
The fundraise will help the company repay existing debt and to bolster its capital reserves to deal with disruptions caused by the covid-19 pandemic as well as to take advantage of the opportunities arising out of the pandemic.
“The success of the Rights Issue will enable us to capitalise on the growth opportunities that lie ahead with increased vigour, and continue with our mission to drive financial inclusion in rural and semi-urban geographies," said Ramesh Iyer, vice-chairman and managing director of Mahindra Finance.
Investment banks Kotak Mahindra Capital, Axis Capital, BNP Paribas and others advised the lender on the rights issue.
Several companies have tapped the rights issue route in recent months to raise capital. These include Reliance Industries Ltd, Shriram Transport Finance Co Ltd, PVR Ltd, Arvind Fashions Ltd and Aditya Birla Fashion & Retail Ltd
