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Mumbai, Jan 19: Mahindra&Mahindra Financial Services has announced that it would be raising Rs 414.2 crore through a preferential allotment of 10,900,000 equity shares to two private equity funds at a price of Rs 380 per share. This price represents a premium of over 20 per cent to today's closing price of Rs 315 per share.

The board of directors have approved the proposed issue of 7,000,000 equity shares to funds managed by TPG Axon Capital (TAC) and 3,900,000 equity shares to funds managed by Standard Chartered Private Equity (SCPE) all at a price of Rs 380 per share. With this investment, TAC and SCPE will own 7.22 per cent and 4.02 per cent respectively of the post issue equity capital of the Company.

The extraordinary general meeting of the Company is to be convened on February 19 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, a release stated.

UNI