M&M Financial to foray into life, health, general insurance business

Mahindra & Mahindra Financial Services news: To enter the business, the company will make changes in the MOU with the permission of the shareholders. Furthermore, it will function as the corporate agent.

Mahindra & Mahindra Financial Services news: The Corporate Agency will help the company diversify its sources of income. Image: Freepik/ Representational image

Mahindra & Mahindra Financial Services share price NSE, M&M Financial share price NSE: Shares of Mahindra & Mahindra Financial Services gained on Friday after the NBFC company received the board's approval to foray into the business of life, health, and general insurance—both group and individual. M&M Financial shares gained over two per cent to touch the day's high of Rs 296 on NSE, continuing the winning streak for the second session. However, M&M Financial shares slipped in red, down 0.95 per cent at Rs 286.6 on NSE.

To enter the business, the company will make changes in the MOU with the permission of the shareholders. Furthermore, it will function as the corporate agent.

What are the expected benefits?

The Corporate Agency will help the company diversify its sources of income. The expected net fee income from the said business, as per the regulatory filing, could be approximately 0.1 per cent to 0.2 per cent of its standalone average assets over the next 1-3 years.

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What is the estimated amount to be invested?

"An initial investment/ outlay of approx. Rs.5 Crores to Rs 10 Crores, mainly towards technology set up, manpower hiring & training and certification costs," the company's filing read.

M&M Financial share price history

M&M Financial's stock has given a positive return of over 20 per cent in the last 12 months (from December 22, 2022). In comparison, the headline index Nifty 50 has rallied over 17 per cent.

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