Mahindra Finance, the financial arm of Mahindra & Mahindra, today said it will raise up to Rs 570 crore through institutional placements by March and is keen to enter the mutual fund business.
The non-banking finance company (NBFC) has received board approval for its QIP and is awaiting regulatory approvals to enter the MF business.
"We plan to raise up to Rs 570 crore through a QIP to fuel our expansion plan by March this year. The rural demand is very buoyant and we want to tap the sector," Mahindra Finance Managing Director Ramesh G Iyer told PTI here.
"We will use the funds to leverage business opportunities and provide funding for loans to our customers," he said, adding, "the company has already roped in three merchant lenders-Citibank, JM Financial and Kotak Mahinda, for same".
The NBFC has filed an application to launch an asset management company (AMC) to float a mutual fund and it is under review by the regulatory authority, Iyer said.
The company hopes to provide mutual fund products to the vast untapped rural market customers, he said.
Mahindra Finance has registered 32 per cent increase in its total income (on a standalone basis) at Rs 530 crore for the second quarter ended December 31, as compared to Rs 402 crore during the same period last year.