Mahindra Finance Approves Rights Issue To Raise ₹30 Billion

The board of Mahindra and Mahindra Financial Services Ltd. has approved raising up to ₹30 billion through a rights share issue, to benefit from the Securities and Exchange Board of India's simplified rights issue regulations, the company informed the exchanges on Friday.

The non-banking financial company had initially approved raising funds through a rights share issue in February. The approval is "not for any additional offer and issuance of equity shares but only a fresh approval for the same matter," the company clarified. SEBI's simplified rights issue process aims to make the procedure time-, process-, and cost-efficient, M&M Financial said.

Mahindra Finance added that the rights issue will improve its tier-I capital by more than 200 basis points. Its capital adequacy ratio as of March 31 was 18.3%.