M&M has been allotted 8.52 crore equity shares at ₹194 per share (including a ₹192 premium) as part of the ₹2,996 crore rights issue. The acquisition, valued at approximately ₹1,652 crore, includes both the company’s rights entitlement and additional shares applied for.
Following the allotment, M&M’s holding in MMFSL has increased from 52.16% to 52.49%, raising 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 allotment of 15.44 crore fully paid-up equity shares of face value ₹2 each to eligible shareholders and renouncees on June 9, 2025. The shares are expected to be credited to investors’ demat accounts in line with SEBI’s circular dated March 11, 2025.
MMFSL, one of India’s leading non-banking finance companies, reported standalone revenue of ₹16,018.95 crore and consolidated revenue of ₹18,463.10 crore for FY25. Its net worth as of 31 March 2025 stood at ₹19,812.23 crore (standalone) and ₹21,572.98 crore (consolidated).
Although MMFSL is a related party by virtue of being a subsidiary, M&M clarified that this investment does not fall under the related party transaction norms as per SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations. No other promoter group or related entities have any interest in MMFSL beyond their existing shareholding.
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Shares of Mahindra and Mahindra Ltd ended at ₹3,089.00, down by ₹16.05, or 0.52%, on the BSE.
