Shares of Mahindra & Mahindra (M&M) moved higher by 6 per cent to Rs 485 on the BSE on Wednesday after the company announced fund raising plans.
“The board of directors of the company will meet on June 12, 2020 to consider raising of funds by way of issuance of securities including but not limited to secured/unsecured redeemable non-convertible debentures on private placement basis, in one or more tranches / series,” M&M said in a regulatory filing. READ HERE
The board will also consider and approve the audited standalone and consolidated financial results of the company for the fourth quarter and financial year ended March 31, 2020 and recommend dividend, if any, on the same day.
In the past three trading days, the stock of M&M has rallied 13 per cent after the company sold 24,017 tractors in the domestic market in May 2020 despite Covid-19 induced lockdown. It had sold 23,539 units during the same month last year. The timely relaxation of the lockdown for the agricultural sector ensured speedy recovery of tractor demand during May.
“M&M’s total sales volume declined 52 per cent year on year (YoY) to 33,901 units, but was above estimated 23,700 units, mainly due to better-than-expected volume in tractors,” analyst at Emkay Global Financial Services said in sector update.
The auto segment’s volume fell 79 per cent to 9,560 units. The company has opened 70 per cent of auto dealerships and is seeing some initial traction in SCVs and SUV models such as the Bolero and Scorpio.
The company has indicated that domestic volume grew 2 per cent to 24,017 units, led by timely relaxation of lockdowns (from 20th April onward) and positive customer sentiment. Dealers have inventory of below 2 weeks in auto segment, and 3- 4 weeks in tractors, it said.
First Published: Wed, June 03 2020. 14:55 IST