Finance Update

M&M Financial Services: M&M Financial to pick additional 9.86% stake in rural housing unit

The company will purchase 1,18,91,511 equity shares of MRHFL at around Rs 275 crore.

ETMarkets.com|

Mar 27, 2019, 05.44 PM IST

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The company is acquiring 1,18,91,511 equity shares of Rs 10 each at a premium of Rs 231.16 per share.

The company will purchase 1,18,91,511 equity shares of MRHFL at around Rs 275 crore.

In a regulatory filing, Mahindra & Mahindra Financial Services said, “The company is acquiring 1,18,91,511 equity shares of Rs 10 each at a premium of Rs 231.16 per share.”

It also has plans to complete the transaction by June. M&M Fin made the announcement post market hours. Earlier in the day, the scrip settled 3.24 per cent up at Rs 425, while the benchmark BSE Sensex settled 0.26 per cent down at 38,132.88.

In a BSE filing it said, “Acquisition is being done in accordance with the subscription agreement executed between MRHFL and National Housing Bank (NHB) on August 12, 2008 and pursuant to the Offer Letter dated March 11, 2019, received from NHB.”

MRHFL is engaged in the business of housing finance and provides cost-effective and flexible home loans for construction, purchase, extension or improvement of houses. It operates in rural and semi-urban geographies.

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Prakash Poojary
Business Analyst

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