Following its statements about investing in the planned rights issue of Mahindra & Mahindra Financial Services Limited and Mahindra Lifespace Developers Limited, the share price of Mahindra & Mahindra fell more than 6% in early trading on Friday.
Mahindra & Mahindra Share Price Movement:
After a one-day break, the Mahindra & Mahindra share price dropped more than 6% in Friday morning trading, continuing its downward trend. The company’s announcement that it would participate in a ₹4500 crore rights issue for its subsidiaries Mahindra & Mahindra Financial Services and Mahindra Lifespace Developers, as well as rumors of possible government actions to lower import taxes on EVs, have led to the decline and increased competition from foreign firms in India.
The share price of Mahindra & Mahindra began Friday at ₹2,820 on the BSE, which was a little less than the closing price ₹2840. However, during Friday’s intraday trading, the cost of Mahindra & Mahindra’s shares fell even lower, hitting intraday lows of ₹2653.25, representing a drop of almost 6%.
Amidst a severe market correction, the price of Mahindra & Mahindra’s shares has declined from its 52-week or one-year high of ₹3276.30 in February 2025.
On February 20, after market hours, Mahindra & Mahindra revealed plans to invest in the planned rights issue of its listed companies, Mahindra & Mahindra Financial Services and Mahindra Lifespace Developers.
On February 13, 2025, Mahindra & Mahindra declared that the Board of Directors of M&M Financial Services, a publicly traded subsidiary of the business, had authorized a rights issue of equity shares to raise to ₹3,000 crore. Additionally, it stated that the Mahindra Lifespace Developers Board of Directors, a publicly traded subsidiary of the business, has approved the rights issue of equity shares with a maximum raise of ₹1,500 crore.
According to a statement released by Mahindra and Mahindra yesterday, the company’s Board of Directors approved the purchase of equity shares of Mahindra & Mahindra Financial Service and Mahindra Lifespace Developers to the full extent of the company’s rights entitlement. The board also approved the purchase of additional shares and any portion of the rights issue not subscribed for up to the issue size.
