Stock News - M&M Financial Services plans to raise up to Rs. 2,000 crore

Mahindra & Mahindra Financial Services Limited is preparing to raise Rs. 2,000 crore equity capital, said two persons aware of the matter. The company is exploring various routes for the proposed fund-raising, including a QIP (qualified institutional placement) and a private placement of shares with private equity investors. Mahindra finance has started discussion with investment banks and is expected to hire a banker soon to advise on the fund raise.

The company reported a 46 percent fall in net profit to Rs. 58.42 Cr in the QY FY 2017-18. The company had announced a net profit of Rs. 107.64 crore in the last fiscal, correspondingly.

M&M Financial Services had a network of 1183 offices and total assets under management (AUM) of Rs. 47,576 crore as on 30 June. A QIP will add Mahindra Finance to the long list of financial services companies that have opted for the route to raise funds this year.

Through the current year, there are 17 companies that have raised Rs. 34,181.5 crore, through QIP fund raising as per data from primary market. The fund raise will enhance the capital base of Non-Banking Financial Company and help boost its balance sheet. The company has witnessed a growth in its gross & net non-performing assets (NPA) and higher provisions for the same, as per company’s statement.

Weekly market Watch: Sensex gains 141 pts, Nifty gains 61 pts

During the past week ending 1st Sept 2017, Sensex gains 141 points while Nifty gains 61 points. The Nifty index has formed higher lows with bullish pattern for the last three trading sessions. The Nifty managed to end above 9,950, showing some indications of touching the 10,000 mark.

On Friday, Sensex closed at the 31,892 level, up by 161 points and Nifty closed at the 9974 level, up by 56 points. With a strong positive sentiments in the market, there were 1071 advances, 574 declines and 321 unchanged stocks on the NS. India Volatility Index ended at the 11.76 level, down by 1.58 percent.

Pharma stocks and Realty stocks were kept public attention, with gains in the past week. The Nifty Realty index was the topper gaining 2.59 percent while the Nifty Pharma secured the second top position with gains of 2.39 percent. Among other indices, in the past week, Nifty FMCG, Bank, Auto, Metal and Media gained by 0.28%, 0.48%, 1.99%, 1.95% 2.05% respectively.

Stock Exchanges Suggest Extending Trading hours till 7.30pm

Leading stock exchanges are considering a plan to extend its trading timing by 2 to 5 hours so as to better align Indian markets at par with global trends and boost business. At present, trading commences on the Exchanges at 9.00 am and closes at 3.30 pm, with 15 minutes each of pre open sessions and post closing hours.

There is further a proposal to align the timings of equity market in line with commodity derivatives which are being traded till late evening hours. The different proposals on the table include extending trade hours till 5.00 pm, 5.30 pm and 7.30 pm.

In the very past, the exchanges had recommended to extend the timings, but the recommendations have always met with a strong opposition from brokers. Brokers concern is that they would have to call employees in two different shifts for over 10 hours trading period and all their customers would have to be assigned no less than two relationship managers.