Mahindra Finance has taken a significant step towards strengthening its financial foundation by securing approval from its board to raise ₹3,000 crore through a rights issue. This strategic move is primarily aimed at bolstering its capital adequacy ratio as part of the company’s ambitious growth strategy. By ensuring a solid financial footing, Mahindra Finance is positioning itself for future opportunities.
Board Approval for Rights Issue
The decision was confirmed by the Board of Directors, clarifying that this is not a new initiative but rather a continuation of a proposal initially presented on February 13, 2025. The current approval aligns with the updated regulatory framework designed to streamline such fundraising efforts.
- Rights Issue Details:
- Fully paid-up equity shares priced at a face value of ₹2 each.
- Exclusively available to eligible shareholders of Mahindra Finance.
Q3 FY25 Financial Performance
In its latest financial report for Q3 FY25, Mahindra Finance showcased robust growth with a total income of ₹4,144 crore, reflecting a 19% year-over-year increase. The company also reported a Profit After Tax (PAT) of ₹899 crore, marking an impressive 63% year-over-year rise. These results underscore Mahindra Finance’s strong performance in the competitive financial services sector.
Mahindra Finance: A Leader in Financial Services
As one of India’s foremost financial services providers, Mahindra Finance boasts a diverse range of offerings. The company’s portfolio includes:
- Mutual Funds
- Fixed Deposits
- Insurance Broking
- Personal Loans
- SME Loans
- Home Loans
With assets exceeding ₹100,000 crore under management, Mahindra Finance continues to play a pivotal role in supporting various financial needs across the country.
Market Performance Update
On Friday, Mahindra Finance’s shares closed at ₹262, experiencing a slight dip of 0.019%. Despite this minor setback, the company’s solid fundamentals and growth plans position it well for future developments.
In summary, Mahindra Finance’s recent board approval for a rights issue, coupled with its strong financial results, highlights the company’s commitment to growth and stability in the ever-evolving financial landscape.
