M&M Shares Down 7%; Know Key Details

Shares of M&M tumbled 7% on February 21 after the company's board gave a go-ahead to ₹4,500 crore investments in its subsidiaries via the right issue.

As per an exchange filing, the company said that it will invest in two of its subsidiaries, which are namely Mahindra & Mahindra Financial Services Ltd (M&M Finance) and Mahindra Lifespace Developers via a rights issue. The automaker approved to infuse up to ₹3,000 crore in M&M Finance and ₹1,500 crore in Mahindra Lifespace Developers via rights issue.

Soon after this development, shares of Mahindra & Mahindra Ltd went down by 6.6% to ₹2,653.25 on February 20, clocking a market capitalisation of ₹3.33 lakh crore. From its 52-week high of ₹3,276.30, the stock has tumbled nearly 20% despite upbeat inflows.

M&M reported a net profit of ₹2,964 crore in the December quarter, up 19% YoY on the back of surging demand in SUVs and tractors. Revenue from operations went up by 20% YoY to ₹30,538 crore in the December quarter.