MMFSL board approves merger of Mahindra Rural Housing Finance into itself
M&MFIN · price
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Board of MMFSL approved merger of its subsidiary Mahindra Rural Housing Finance (MRHFL) into MMFSL via Scheme of Merger under Sections 230-232 of the Companies Act. Share exchange ratio: 1.8 MMFSL shares (face value Rs 2) for every 10 MRHFL shares (face value Rs 10). MRHFL turnover of Rs 1,154 crore to consolidate with MMFSL's Rs 18,446 crore. Appointed date April 1, 2027. Subject to NCLT, shareholder and creditor approvals. MRHFL is 98.43% owned by MMFSL, so only around 3.48 lakh new MMFSL shares will be issued, meaning very low dilution.
Streamlines group structure, combines lending businesses on one listed platform, and may improve operating efficiency. Equity dilution is minimal since MRHFL is nearly fully owned.