Deal closed | Mahindra & Mahindra Financial Services Ltd. | Rights Issue

Khaitan & Co. Aug 20, 2020

The details of the deal are:

Sector: NBFCs

Announcement date: 21st July 2020

Completion date: 17th August 2020

Name of the client: Mahindra & Mahindra Financial Services Ltd.

Deal description: Acted as Domestic Legal Counsel to Mahindra & Mahindra Financial Services Limited in relation to a rights issue of 61,77,67,960 equity shares at an issue price of INR 50 each, aggregating to INR 3,088.82 crores.

Total consideration: INR 3089 crores (USD 418 million)

Team members: Abhimanyu Bhattacharya, Aditya Cheriyan, Oishik Bagchi, Devarshi Mukhopadhyay, Raghav Bhatia

Role of firm: Acted as Domestic Legal Counsel to Mahindra & Mahindra Financial Services Limited

Financial advisors: Kotak Mahindra Capital Company Limited, Axis Capital Limited, BNP Paribas, Citigroup Global Markets India Private Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited.

Unique feature of transaction:

The Issue saw a unique online platform known as the R-WAP, for submission of applications by resident individual investors;
The Issue is the first ever rights issue by MMFSL since incorporation;
One of the largest syndicates of 9 merchant bankers were involved in executing and marketing the Issue;
The Issue saw excellent investor feedback, having generated demand for over INR 4,000 crores, being 1.3x of the initial deal size;
The Issue saw trading on rights entitlement in dematerialised mode on the floor of the stock exchanges in a recently introduced rights issue regime in India; and
The Issue involved innovative investor reach out through innovative platforms such as AI-based chatbot, SMS etc.