M&M was allotted 8.52 crore equity shares at ₹194 per share (including a ₹192 premium) as part of the ₹2,996 crore rights issue. This acquisition, valued at around ₹1,652 crore, comprises both the company’s rights entitlement and additional shares it applied for.
As a result of the allotment, M&M’s ownership in MMFSL has risen from 52.16% to 52.49%, increasing its total shareholding from 64.44 crore shares to 72.96 crore shares.
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The rights issue committee of MMFSL approved the allocation of 15.44 crore fully paid-up equity shares with a face value of ₹2 each to eligible shareholders and renouncees on June 9, 2025. These shares are anticipated to be credited to investors’ demat accounts in accordance with SEBI’s circular dated March 11, 2025.
MMFSL, one of India’s foremost non-banking finance companies, recorded standalone revenue of ₹16,018.95 crore and consolidated revenue of ₹18,463.10 crore for FY25. Its net worth as of March 31, 2025, was ₹19,812.23 crore (standalone) and ₹21,572.98 crore (consolidated).
Despite MMFSL being a related party due to its subsidiary status, M&M clarified that this investment does not classify as a related party transaction under SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations. No other promoter group or related entities hold any interest in MMFSL beyond their existing shareholding.
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Shares of Mahindra and Mahindra Ltd closed at ₹3,089.00, decreasing by ₹16.05, or 0.52%, on the BSE.
