mumbai mm financial services mahindra finance one of the leading financial services companies in rural and semiurban markets raised rs 867 crore via placement of equities to qualified institutional players the company issued about 975 lakh shares at a price of rs 889 per equity share including premium of rs 879 per share despite dilution in the companys equity base due to this offer mahindra finances stock price rose 46 on thursday in intraday trade the stock rose to an alltime high of rs 1025 on bse going by its current price the qip placement was done at a 105 discount to its thursdays close the floor price for the offering according to sebi rules was rs 88070 per share the funds raised through this offer will be deployed to augment the companys long term resources by way of enhancing its tier i capital base leverage available business opportunities provide funding for loans to its customers and for general corporate purposes a company release said focused on the rural and semiurban sector mahindra finance provides finance for vehicles and tractors through a large network of branches in these areas the qip issue by mahindra finance was the first such offering in recent months amid difficult market conditions the company said in a release the issue was subscribed by over five times with bids of approximately rs 4345 crore was received within a day of its launch on november 7 the offering also witnessed strong participation by marquee investors from across the globe which in the current uncertain economic environment reflected their confidence in the mahindra groups track record of corporate governance and the companys consistent record of good performance the company said the strong demand is a testimony to both the companys business model and the strong growth in rural and semiurban areas in india ramesh iyer md mahindra finance said kotak mahindra capital company citigroup global markets india jm financial institutional securities deutsche equities india and hsbc securities and capital markets india were the bookrunning lead managers for this qip