Mahindra Finance opened its rights issue for subscription on July 28. Mahindra Finance will issue 61.78 crore rights equity shares at a price of Rs.50 per equity share aggregating to Rs.3089 crore. The equity shares will be offered in the ratio 1:1 to all eligible equity shareholders of Mahindra Finance as on the record date of July 23.

The funds via the rights issue will be used to reduce leverage by repaying or prepaying certain outstanding borrowings. The funds will also be used to augment the long-term capital and resources of the company for meeting post-COVID funding requirements. It finances new and pre-owned auto and utility vehicles, tractors, cars and commercial vehicles and has a largely rural market. The rights issue closes on August 11.