Mahindra Finance, a group company of Mahindra & Mahindra, today said it has raised Rs 426.2 crore through qualified institutional placement (QIP).

The company raised the fund through allotment of 61.33 lakh shares of the company to qualified institutional buyers, Mahindra Finance said in a filing to the Bombay Stock Exchange (BSE).

The fund raised would be utilised for expansion plan of the company.

Post the QIP issue, Mahindra & Mahindra will hold 56 per cent stake in the company. The new shares issued would under QIP will be listed on the BSE and the National Stock Exchange, it said.

Mahindra Finance provides loans for utility vehicles, tractors, cars, commercial vehicles, construction equipment and personal loans