Mahindra & Mahindra today said it will increase holding in its arm Mahindra & Mahindra Financial Services Ltd (MMFSL) to 53.25 per cent through acquisition of 2.5 crore shares for a cash consideration of Rs 1,055 crore.
The company has agreed to subscribe 2.5 crore equity shares of Rs 2 each of MMFSL at a premium of Rs 420 per share on a preferential basis, Mahindra & Mahindra (M&M) said in a BSE filing.
After the acquisition, the company's holding in MMFSL will increase to 53.25 per cent from 51.2 per cent earlier, it added.
MMFSL is making the preferential issue to augment its long-term resources to meet its business growth and funding requirements, investment in its subsidiaries and joint ventures, meeting long-term working capital requirements, among others, the filing said.
The acquisition is expected to be completed by December 14, 2017, M&M added.
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