Mahindra Said to Tap Citigroup, JM for $175 Million Sale

Mahindra & Mahindra Financial Services Ltd. (MMFS), the auto-loans unit of India’s largest tractor maker, has picked three banks including Citigroup Inc. (C) and JM Financial Services Pvt Ltd. to manage a share sale to institutions, said two people with knowledge of the matter.

Mahindra also picked Kotak Mahindra Capital Co. for the sale, expected this quarter, the people said, asking not to be named as the process is private. The company said on Oct. 9 that its board approved raising 9.25 billion rupees ($175 million).

Indian companies are looking at raising equity capital as the benchmark BSE India Sensitive Index climbed to its highest levels in more than a year on renewed investor interest following government reforms.

Separately, Apollo Tyres Ltd. (APTY) also approved a $150 million share sale to institutions this month. Apollo has chosen Standard Chartered Plc (STAN) and HSBC Holdings Plc (HSBA) to manage the share sale, one person with knowledge of the matter said.

Sunil Gate, a spokesman for Mahindra and Mahindra, declined to comment. Rohit Sharan, a spokesman for Apollo, declined to comment beyond the stock exchange notice.

To contact the reporters on this story: Ruth David in London at

George Smith Alexander in Mumbai

To contact the editor responsible for this story: Jacqueline Simmons at

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