FIIs hike stake in Mahindra Lifespace to 27.2%

Non-banking financial company Mahindra and Mahindra Financial Service raised Rs 867 crore through a qualified institutional placement issue after it was oversubscribed by 5 times.

The company raised Rs 867 crore through the issue of about 97.5 lakh equity shares at a price of Rs 889 a share. The company added that the issue price was at a 0.94 per cent premium to the SEBI floor price of Rs 880.70 a share.

52-week high

The stock rose 4.62 per cent on the BSE on Thursday to close at Rs 992.80 after reaching a 52-week high of Rs 1,024.65 in intra-day trade.

The company stated that the funds raised would be deployed to augment long-term resources by way of enhancing tier-I capital base, leverage available business opportunities, provide funding for loans to company’s customers and general corporate purposes.

Kotak Mahindra Capital Company, Citigroup Global Markets India, JM Financial Institutional Securities, Deutsche Equities India, HSBC Securities and Capital Markets acted as book-running lead managers for the QIP.

According to the company’s shareholding pattern as on September 2012, the promoter and promoter group stake stood at 57.20 per cent.

Group Co’s disclosure

Another Mahindra Group company, Mahindra Lifespace Developers announced that the holdings of foreign institutional investors as on November 9 had reached 27.22 per cent of the paid-up equity capital.

The disclosure comes in the wake of RBI’s letter to the company sent earlier.

The central bank had in September 2005 notified that FIIs could purchase under portfolio investment scheme equity shares of Mahindra Lifespace through primary markets and stock exchanges in India up to 30 per cent of its paid-up equity capital. RBI had also informed the company in September 2005 and December 2007 that it would be monitoring the FII investments under PIS at sectoral cap or statutory ceiling as applicable and not at the intermediate ceiling fixed by the company.

According to the company’s shareholding pattern as on September 2012, FIIs held a 26.58 per cent stake under the company’s public holding.

The stock of Mahindra Lifespace Developers closed at Rs 413, up 0.60 per cent from its previous close on the BSE on Thursday.

(This article was published on November 15, 2012)
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