The board of Mahindra & Mahindra Financial Services Limited (MMFSL) has granted a fresh approval for its proposed ₹3,000 crore rights issue, reaffirming its earlier decision dated February 13, 2025. The renewed resolution aligns with the SEBI’s new simplified rights issue regulations notified on March 3, 2025, which promise to make capital raising more time- and cost-efficient.
The company clarified that this move does not involve any increase in the issue size but is intended to leverage the procedural ease offered by the amended SEBI framework that came into effect from April 8, 2025.
MMFSL stated that the rights issue aims to enhance Tier-1 capital by over 200 basis points, supporting its growth aspirations and strengthening its capital adequacy ratio amid robust expansion in its secured asset book. The company’s AUM has clocked a 20% CAGR over the past 24 months, and gross Stage 3 (GS3) assets remained under 4% throughout FY25, with credit costs below 2%.
The board or the rights issue committee will later decide the specifics of the issue, including price, entitlement ratio, record date, payment terms, and other details.
In a press note, MMFSL emphasized its strategic focus on high-quality asset growth and rural financial inclusion, positioning itself to benefit from India’s consumption-led growth story.
The company had a consolidated AUM of over USD 14.1 billion and services over 1 crore customers through 1,365 branches across 4.8 lakh villages and 8,000 towns.
