MUMBAI: Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), the non-bank lending arm of Mahindra group, on Monday said it will raise up to Rs, 3,500 crore via a rights issue.
The plan to raise equity capital comes after the non-banking financial company (NBFC) reported a 62% drop in its profit for the quarter ended 31 March to Rs221 crore. The company set aside additional provisions of ₹574 crore for covid-19 in Q4FY20.
The lender also reported that over 75% of its customers have opted for the three-month moratorium on loan repayments announced by the Reserve Bank of India (RBI) as a relief measure.
Several lenders are tapping the market to raise funds as they plan to bolster up their balance sheets in anticipation of contingencies as well as opportunities arising out of the coronavirus pandemic and the following nationwide lockdown.
Banks such as Kotak Mahindra Bank Ltd and IDFC First Bank Ltd have raised funds in the last few weeks, with the former raising ₹7,442 crore, while the latter picking up Rs2,000 crore.
At 3:08 pm, shares of Mahindra Finance traded at ₹145.40, up 3.0% on the BSE.
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