Mahindra & Mahindra Financial Services shares surged as much as 15 per cent to hit an intraday high of Rs 159.50 on the BSE after the company fixed July 23 as the record date for its rights issue to existing investors. Mahindra & Mahindra Financial Services is planning to raise a maximum of Rs 3,500 crore via rights issue wherein the company will be selling 61,77,64,960 fully paid-up equity shares of face value of Rs 2 each at Rs 50 per equity share e (including a premium of Rs. 48 per fully paid-up Equity Share). Rights issue will open on July 28 and close on August 11, M&M Financial Services said in an exchange filing.
Last week, the company said that its annual profit rose by more than 300 per cent in June quarter to Rs 432 crore from Rs 108 crore in the previous quarter.
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.
"During the period ended June 30, 2020, the company's customer base has crossed 69 lakh.The outbreak of the COVID-19 pandemic, followed by lockdown has resulted in the slowdown in economic activities across the country. The impact had led to the closure of all the company's branch offices, business and recovery touchpoints and completely halted field operations from last week of March 2020. Operations gradually resumed in mid-May and as on June 30, 2020 the company has resumed operations in over 1,100 offices PAN India," M&M Financial Services said in an exchange filing.
M&M Financial Services shares have surged over 100 per cent since May 22, the day the stock hit its 52-week low of Rs 76.46 on the National Stock Exchange.
As of 12:08 pm, Mahindra & Mahhindra Financial Services shares traded 13.53 per cent higher at Rs 157.70, outperforming the Sensex which was trading on a flat note.