Mahindra & Mahindra Financial Services IPO
Mahindra & Mahindra Financial Services IPO — date, price band, lot size & details 2006
Mahindra & Mahindra Financial Services listed on 17 Mar 2006 at ₹225, 12.5% above the ₹200 issue price.
Mahindra and Mahindra Financial Services is a Mahindra group finance company that lends for utility vehicles, tractors and cars, mainly to rural and semi-urban customers. Its total income was Rs 404.76 crore in FY2005.
Stock price
Mahindra & Mahindra Financial Services is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 21 Feb 2006
- Close 24 Feb 2006
- Allotment 08 Mar 2006
- Refund/credit TBA
- Listing 17 Mar 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 21 to 24 Feb, 2006 |
|---|---|
| Price Band | ₹170 – ₹200 |
| Face Value | ₹10 |
| Lot Size | 35 Shares |
| Issue Size | ₹400 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 7,000 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 35 shares at the ₹200 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 35 | ₹7,000 |
| Retail (max) | 28 | 980 | ₹1,96,000 |
| S-HNI (min) | 29 | 1,015 | ₹2,03,000 |
| S-HNI (max) | 142 | 4,970 | ₹9,94,000 |
| B-HNI (min) | 143 | 5,005 | ₹10,01,000 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Profit after tax rose from Rs 44.18 crore in FY2003 to Rs 82.27 crore in FY2005.
- 02Total income rose from Rs 245.96 crore in FY2003 to Rs 404.76 crore in FY2005.
- 03It had 295 branches across India.
- 04Net worth rose from Rs 205.80 crore in FY2003 to Rs 402.61 crore in December 2005.
Risks · 5
- 01Total borrowing rose from Rs 1,109.39 crore in FY2003 to Rs 3,601.79 crore in December 2005, about nine times its net worth.
- 02Rural lending depends on farm incomes and monsoons; profit was Rs 61.07 crore in nine months to December 2005.
- 03It faced 25 criminal complaints and 190 civil cases involving it and its employees.
- 04Rs 200.00 crore of the Rs 400 crore issue went to the selling shareholder.
- 05Promoter holding fell from 89.78% before the issue to 67.72% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Mahindra & Mahindra Financial Services offer document.
| Metric | 31 Dec 2005 | 31 Mar 2005 | 31 Mar 2004 | 31 Mar 2003 |
|---|---|---|---|---|
| Assets | 4,305.28 | 3,057.97 | 2,014.10 | 1,430.86 |
| Total Income | 398.30 | 404.76 | 301.36 | 245.96 |
| Profit After Tax | 61.07 | 82.27 | 65.09 | 44.18 |
| NET Worth | 402.61 | 355.58 | 251.74 | 205.80 |
| Reserves and Surplus | 331.92 | 285.42 | 191.12 | 145.18 |
| Total Borrowing | 3,601.79 | 2,454.11 | 1,571.39 | 1,109.39 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Mahindra & Mahindra Financial Services RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Mahindra & Mahindra Financial Services IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹10.82 | ₹9.47 |
| P/E Ratio (x) | 18.48 | 21.12 |
| Market Cap at Offer Price (₹ Cr) | ₹1,128.84 | ₹1,289.76 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹200 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹212.20 Cr of the issue is earmarked to named objects.
About the company
It finances utility vehicles, tractors and cars, mainly for rural and semi-urban customers, with field executives visiting customers to collect instalments.
At 31 December 2005 it had 295 branches, of which 155 were linked to servers at its Mumbai head office.
The IPO was Rs 400 crore, with Rs 200.00 crore of fresh issue and Rs 200.00 crore of offer for sale, at Rs 200, the top of the Rs 170 to Rs 200 band.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Mahindra & Mahindra Financial Services IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Kotak Mahindra Capital Company Limited
204 issues handledBest listing: Premier Energies (+120.0%). Weakest: Puravankara Projects (-22.5%).
ABN-AMRO Securities (India) Pvt. Ltd
2 issues handled2 of their issues have listed so far, and 1 opened above the issue price (average +18.9%). That is too small a sample to read as a hit rate.
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Mahindra & Mahindra Financial Services?
The current Grey Market Premium is ₹0.
What is the Mahindra & Mahindra Financial Services IPO price band?
₹170 to ₹200, on a face value of ₹10.
When is the allotment?
The basis of allotment is 8 March 2006, with listing on 17 March 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
