M&M Financial surges 14 per cent as stock turns ex-date for rights issue

Shares of Mahindra & Mahindra Financial Services were up by 14 per cent in the early trading session on Wednesday after the stock went ex-rights today.

On July 18, 2020, the board of directors of the company had approved a 1:1 rights issue at Rs 50 per share, amounting to a total issue of Rs 3,089 crore. The board fixed a date of Thursday, July 23, 2020, as the record day for the purpose of determining the shareholders who will be eligible for the rights issue.

The rights issue will open on July 28, 2020, and close on August 11, 2020, with the full amount of the issue price of Rs 50 payable on application.

Mahindra & Mahindra (M&M), the promoter of the company had earlier informed the exchanges that its loans and investment committee had approved subscription to the equity shares of M&M Financial Services to the full extent of the rights entitlement.

Mahindra & Mahindra Financial Services Limited is a non-banking financial company (NBFC). It provides a range of retail products and services, such as financing vehicles for commercial and personal use, tractors, small and medium enterprise (SME) loans, and various other financial products.

At 11.15 am on Wednesday, the stock of M&M Financial Services was trading at Rs 158.40, higher by 14.04 per cent or Rs 19.95 per share on the BSE, against 0.07 per cent gain in the benchmark index.