Mahindra Finance QIP issue receives overwhelming response at over 5 times
Issue priced at Rs. 889, at a premium over SEBI floor price
Mumbai: Mahindra & Mahindra Financial Services Limited (Mahindra Finance), one of the leading financial services companies in the rural and semi-urban markets has successfully concluded its capital-raising exercise through QIP (Qualified Institutional Placement).
Key details are as follows:
- First QIP in India in recent months amid difficult market conditions.
- Rs 867 crores raised through the issue of 97,50,257 Equity Shares at a price of Rs. 889 per equity share, including a premium of Rs. 879 per equity share in line with the market price of Rs 889 on November 7, 2012, the launch date. The issue price is at a 0.94% premium to the SEBI Floor Price of Rs. 880.70 a share.
- Issue subscribed by over 5 times. The Company received bids of approximately Rs. 4,345 crores within 24 hours of launching the issue.
- Strong participation by marquee investors across the globe.
Speaking on the occasion, Mr. Bharat Doshi, Chairman, Mahindra & Mahindra Financial Services Limited said, "The high level of interest shown by leading institutional investors across the globe, in the current uncertain economic environment, reflects their confidence in the Group's track record of corporate governance and the Company's consistent record of good performance."
Mr. Ramesh Iyer, Managing Director, Mahindra & Mahindra Financial Services Limited said, “The strong demand is a testimony to both the Company’s business model and the strong growth in rural and semi-urban India.”
Kotak Mahindra Capital Company, Citigroup Global Markets India Private Limited and JM Financial Institutional Securities Private Limited, Deutsche Equities India Private Limited and HSBC Securities and Capital Markets (India) Private Limited acted as the book-running lead managers for this QIP.
The funds raised will be effectively deployed to augment long term resources by way of enhancing the Tier I capital base, leverage available business opportunities, provide funding for loans to the Company’s customers and for general corporate purposes.
For further information, please contact:
Atul Malikram
9827092823