M&M Financial board to decide rights issue terms on 18 July

Mahindra & Mahindra Financial Services on Friday (10 July) said its board members will meet on 18 July to decide the terms and conditions of the company's proposed Rs 3,500 crore rights issue.

The NBFC said the board will discuss the rights issue price, the rights entitlement ratio, the record date and timing of the rights issue.

The board in its meeting held on 1 June 2020, had approved raising upto Rs 3,500 crore through a rights issue. It also approved the increase in authorised share capital.

Shares of M&M Financial Services fell 2.25% at Rs 203.85 on Friday (10 July).

The board will also consider Q1 results on 18th July. The NBFC's consolidated net profit dropped 65.8% to Rs 234.82 crore on 8.05% rise in total income to Rs 3,148.47 crore in Q4 March 2020 over Q4 March 2019.

In order to cover the contingencies that may arise due to COVID-19 Pandemic, the NBFC incorporated the management overlays in the impairment loss allowance and the total provision recognized in the statement of profit and loss during the quarter stood at Rs 681.16 crore.

Mahindra & Mahindra Financial Services, part of the $20.7 billion Mahindra Group, is a non-banking finance company.

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