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Mahindra Finance holds meeting with Warburg Pincus

LiveMint logoLiveMint 04-09-2017 Swaraj Singh Dhanjal

Mumbai: Mahindra and Mahindra Financial Services Ltd (Mahindra Finance) Monday said that it met with private equity firm Warburg Pincus on 1 September, as part of its institutional investor meetings.

A Mahindra Finance stock exchange filing said it was a one-on-one meeting but did not specify what was discussed.

Mint on Monday reported that Mahindra Finance is planning to raise as much as Rs2,000 crore equity capital, and is exploring various routes for the proposed fund-raising, including a qualified institutional placement (QIP) and a private placement of shares with private equity investors or other institutional investors.

Mahindra Finance provides auto loans primarily for purchasing tractors, utility vehicles and cars. Mahindra and Mahindra Ltd, India’s largest tractor and utility vehicle manufacturer, holds 51.2% stake in the NBFC.

In the first quarter of 2017-18, Mahindra Finance reported a 46% decline in net profit to Rs58.42 crore. It had reported a net profit of Rs107.64 crore in the corresponding quarter of last fiscal.

Gross non-performing assets (NPAs) grew to 10.5% from 9% a year ago, while net NPA grew to 4.4% from 3.6%.

The company had a network of 1,183 offices and total assets under management (AUM) of Rs47,576 crore as on 30 June. A QIP will add Mahindra Finance to the long list of financial services companies that have opted for the route to raise funds this year.

On Monday, shares of Mahindra Finance closed at Rs427.1, down 1.94% on the BSE, while the benchmark Sensex closed at 31,702.25 points, down 0.6%.

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