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New Delhi, Jan 19: Non-banking finance company, Mahindra and Mahindra Financial Services Ltd today said it will raise Rs 414.2 crores through a preferential allotment of 10.9 million equity shares.

The arm of auto major Mahindra and Mahindra, will allot the shares to two private equity funds at Rs 380 per share, a premium of 20 per cent of yesterday's closing price of Rs 315 per share. The board which met yesterday, approved issue of seven million shares to TPG Axon Capital (TAC) and 3.9 million shares to Standard Chartered Private Equity (SCPE), the company said in a statement to BSE.

With this investment, TAC will own 7.22 per cent while the SCPE will have 4.02 per cent of the post issue equity capital of the company.

The 'Extraordinary General Meeting' will be convened today for obtaining the shareholders approval for the increase in authorised share capital and issuance of equity shares.

Kotak Investment Bank was the exclusive financial advisor for the transaction.


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