InvestorQ : Why is M&M Finance planning to raise funds through a rights issue?
Juvina Maggie made post

Why is M&M Finance planning to raise funds through a rights issue?

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Angel dcosta answered.
4 months ago
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M&M Financial proposes to raise Rs.3500 crore via rights issue. It had reported a 62% drop in profits for the fourth quarter ended Mar-20 due to Rs.574 crore as Covid-19 provisions. More than 75% of its customers had opted for the moratorium and that also put pressure on cash flows. Rights issue is a clear move to tap the market to raise funds and bolster up the balance sheets in anticipation of contingencies as well as opportunities.

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