Mahindra & Mahindra Financial Services share price dropped over 7% in early trade on Tuesday after the company deferred its board meeting scheduled for today after a fraud worth ₹150 crore was detected at one of its branches in the North East region. Mahindra Finance shares declined as much as 7.88% to ₹256.85 apiece on the BSE.
In a stock exchange filing, Mahindra & Mahindra Financial Services said its board meeting to consider financial results for the quarter ended March 2024 quarter, scheduled to be held on April 23, has now been deferred to a later date, which shall be intimated in due course.
“A fraud was detected at one of the company’s branches in the North East. In respect of retail vehicle loans disbursed by the Company the fraud involved forgery of KYC documents leading to embezzlement of Company funds. The investigations in the matter are at an advanced stage,” Mahindra Finance said in a regulatory filing on Tuesday.
The company estimates that the financial impact of this fraud is to the extent of ₹150 crore.
Investigations are underway, and necessary corrective actions have been identified and are at various stages of implementation, including arrest of few persons involved, it added.
M&M Finance shares have moved a little in the past 12 months (up nearly 6 per cent). Placed on technical charts, the broader outlook on M&M Finance suggests a major hurdle around Rs 300–Rs 315 levels, implying a selling pressure zone.
The breakout exists once the price action succeeds in overcoming this hurdle range. On the downside, Rs 250 remains a support during the current uncertainties, according to Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox.
