Jul 2: IFC, a member of the World Bank Group, has invested Rs 6.4 billion ($100 million) in Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), the financial services arm of Mumbai-based auto major Mahindra & Mahindra Ltd (M&M).
According to the company, this investment will enable it to further augment its growth, by extending loans to individuals, including farmers, to buy tractors, vehicles and other equipment, along with financing small and medium enterprises. The investment will be through secured nonconvertible debentures, it said.
“Since its inception in 1991, Mahindra Finance has been working in the rural and semi-urban areas of India, catalyzing financial inclusion of the unbanked and under-served communities and also partnering with them in their difficult times. Our focus has been on enabling these customers with innovative financial solutions, tailor made to their evolving needs, fueling entrepreneurial aspirations, promoting self-reliance and transforming lives,” said Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance.
The new loan will help the company expand further and cater to the needs of small landholders, according to the company.
“To make a significant impact in the agriculture sector, we need to provide patient capital and deliver climate-smart solutions. Mahindra Finance brings the scale and expertise, and we aim to develop agribusiness solutions focused on women,” said Arun Kumar Sharma, Chief Investment Officer, IFC.
The announcement came in after market closing hours today. Shares of Mahindra Finance closed trading at Rs 464, up 2.41% from the previous closing of Rs 453.10, on BSE.