M&M gains momentum as board plans to consider bonus issue

Mahindra & Mahindra rose 1.29% to Rs 1,348.30 at 9:25 IST on BSE after the company said that its board of directors will meet on 10 November 2017 to consider proposal for bonus issue of shares.

The announcement was made on Sunday, 5 November 2017.

Meanwhile, the S&P BSE Sensex was down 40.76 points or 0.12% at 33,644.80.

On the BSE, 2,864 shares were traded on the counter so far as against the average daily volumes of 69,405 shares in the past one quarter. The stock had hit a high of Rs 1,361.10 and a low of Rs 1,343.70 so far during the day. The stock had hit a 52-week high of Rs 1,459.50 on 12 June 2017 and a 52-week low of Rs 1,141.80 on 2 December 2016.

The stock had underperformed the market over the past one month till 3 November 2017, gaining 5.21% compared with 6.95% gains in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 6.05% as against Sensex's 4.49% rise. The scrip had also underperformed the market in past one year, declining 2.02% as against Sensex's 22.8% rise.

The large-cap company has equity capital of Rs 310.55 crore. Face value per share is Rs 5.

Separately, Mahindra & Mahindra (M&M) said that the offer price for the initial public offer (IPO) of its subsidiary Mahindra Logistics has been fixed at Rs 429 per share aggregating Rs 828.83 crore. The announcement was made after market hours on Friday, 3 November 2017. The IPO of Mahindra Logistics, which concluded on 2 November 2017, was subscribed 5.54 times. The company had fixed Rs 425-429 per share for the share sale.

The company will announce its Q2 results on 10 November 2017. M&M's net profit fell 19.8% to Rs 765.96 crore on 4.8% growth in net sales to Rs 11575.71 crore in Q1 June 2017 over Q1 June 2016.

M&M enjoys a leadership position in tractors and utility vehicles in India.

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