M&M Fin Services to raise Rs 400cr

Mahindra & Mahindra Financial Services is planning to raise Rs 414.2 crore through preferential allotments of 10.9 million equity shares to two private equity funds managed by TPG Axon Capital (TAC) and Standard Chartered Private Equity (SCPE).

The allotment would be done at Rs 380 per share - a 20% premium to the Firday's closing price of Rs 316 per share.

After the placement, TAC would hold 7.22% in Mahindra & Mahindra Financial Services and SCPE's share holding would be 4.02%.

An extraordinary general meeting of shareholders would be convened on 19 February, 2008 to approve the proposals.