Please refer enclosed file
Awaiting price reaction for this filing.
Mahindra & Mahindra (M&M) has been allotted 8,51,82,612 equity shares of its listed subsidiary Mahindra & Mahindra Financial Services Limited (MMFSL) under MMFSL's Rights Issue at Rs. 194 per share (face value Rs. 2, premium Rs. 192). M&M's total investment works out to approximately Rs. 1,652 crore, covering both its rights entitlement and additional shares applied for. As a result, M&M's stake in MMFSL has increased marginally from 52.16% to 52.49% (from 64.44 crore shares to 72.96 crore shares). MMFSL, one of India's leading NBFCs focused on rural and semi-urban financing, had standalone revenue of Rs. 16,019 crore and consolidated revenue of Rs. 18,463 crore for FY25, with AUM of Rs. 1,19,673 crore. The total Rights Issue size was 15,44,41,240 shares.
M&M is reinforcing its controlling stake in its key financial services subsidiary, which is positive for the group's strategic alignment. The marginal stake increase (0.33 percentage points) means a capital outflow of roughly Rs. 1,652 crore from M&M, but this is routine in a rights issue where the parent supports its subsidiary's capital raise. Limited direct impact on M&M's stock price expected.