Mahindra & Mahindra boosts stake in MMFSL via rights issue participation

Mahindra & Mahindra (M&M) said that it has increased its stake in Mahindra & Mahindra Financial Services (MMFSL), its listed non-banking finance subsidiary, following the allotment of equity shares under MMFSL's Rs 2,996 crore rights issue.

M&M has been allotted 8.52 crore equity shares at Rs 194 per share (including a Rs 192 premium), for a total consideration of approximately Rs 1,652 crore. The allotment includes both its rights entitlement and additional shares applied for.

Following the transaction, M&Ms shareholding in MMFSL has increased from 52.16% to 52.49%. In absolute terms, the company now holds 72.96 crore shares, up from 64.44 crore shares earlier.

The rights issue committee of MMFSL approved the allotment of 15.44 crore fully paid-up equity shares of face value Rs 2 each to eligible shareholders and renouncees on 9 June 2025. The shares are expected to be credited to investors demat accounts as per SEBIs circular dated 11 March 2025.

M&M clarified that while MMFSL is a related party by virtue of being a subsidiary, the investment does not fall under related party transaction norms in accordance with SEBIs Listing Obligations and Disclosure Requirements (LODR) Regulations.

The company added that no other promoter group entities have any interest in MMFSL beyond their existing shareholding.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

The auto major's standalone net profit surged 21.85% to Rs 2,437.14 crore in Q4 FY25 as against Rs 2,000.07 crore recorded in Q4 FY24. Revenue from operations increased 24.50% year on year (YoY) to Rs 31,353.40 crore in the quarter ended 31 March 2025.

Shares of Mahindra & Mahindra (M&M) rose 0.07% to Rs 3,089.60 on the BSE.

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