M&M Financial Services at record high, soars 26% post QIP issue

The company has raised Rs 867 crore by issuing of 9.75 million shares subscribed by over five times.

Mahindra and Mahindra Financial Services has surged 12% to Rs 1,117 in noon deals, also its record high level on the Bombay Stock Exchnage. The stock has appreciated 26% against its qualified institutional placement (QIP) price of Rs 889 per share.

The financial arm of auto major Mahindra and Mahindra (M&M) has raised Rs 867 crore by issuing of 9.75 million shares got huge response from the investors. The issue was subscribed by over five times.

The company said the funds raised will be deployed to augment long-term resources by way of enhancing the Tier-I capital base, leverage available business opportunities, provide funding for loans to the company's customers and for general corporate purposes.

The stock opened at Rs 1,007 and hit a low of Rs 1,000 on the BSE. A combined 396,211 shares have changed hands on the counter so far on both the exchanges.