Mahindra Lifespace Developers Ltd (MLDL), the real estate and infrastructure arm of the Mahindra Group, has announced a rights issue to raise up to ₹1,496.28 crore. The capital raised will support the company’s ongoing growth initiatives, including debt repayment and funding for future real estate acquisitions.
The record date to determine shareholders eligible for the rights entitlement is May 23, 2025. The issue will open on June 2, 2025, and close on June 17, 2025.
Rights Issue Highlights
- Issue Price: ₹257 per share
- Face Value: ₹10 per share
- Total Issue Size: 5,82,20,901 equity shares (₹1,496.28 crore)
- Entitlement Ratio: 3 rights equity shares for every 8 fully paid-up equity shares held as of the record date
- Renunciation Deadline: June 12, 2025
- Expected Listing Date: June 20, 2025
About Mahindra Lifespace Developers Ltd
Mahindra Lifespace Developers Ltd is a pioneer in sustainable urban development and industrial infrastructure. It operates across two key verticals:
1. Residential Development
Through the Mahindra Lifespaces and Mahindra Happinest brands, the company develops eco-conscious residential projects across major metros such as Mumbai, Bengaluru, Pune, Chennai, and Hyderabad.
2. Integrated Cities and Industrial Clusters (IC&IC)
This vertical comprises large-scale infrastructure developments under Mahindra World City and Origins by Mahindra. These projects focus on creating industrial ecosystems, urban infrastructure, and economic corridors.
Operational Pipeline (as of March 2025):
- Completed Projects: 22.70 million sq. ft.
- Ongoing Projects: 10.05 million sq. ft.
- Future Development Phases: 2.73 million sq. ft.
- Upcoming Launches: 11.98 million sq. ft.
In FY25, the Residential vertical reported pre-sales of ₹2,803.56 crore, while the IC&IC vertical covered 5,737 acres, highlighting MLDL’s scale and execution capabilities.
Objectives of the Rights Issue
The net proceeds from the rights issue will be allocated towards:
- Repayment or prepayment of borrowings – up to ₹1,005 crore
- Acquisition of land, real estate projects, development rights, and FSI premiums
- General corporate purposes
This capital raise is a key component of the company’s strategic growth roadmap, aimed at enhancing balance sheet strength and capital flexibility for future expansion.
Financial Snapshot (Consolidated, ₹ in crore)
| Metric | FY24 | FY23 |
|---|---|---|
| Revenue | ₹18,463.10 | ₹15,796.85 |
| Profit After Tax | ₹2,260.87 | ₹1,943.05 |
| Net Worth | ₹21,529.46 | ₹19,933.25 |
| Total Borrowings | ₹0.00 | ₹0.00 |
MLDL continues to maintain a debt-free balance sheet, underscoring its financial prudence while aggressively scaling operations in residential and industrial segments.
Market Outlook and Investment Considerations
At the time of the announcement, Mahindra Lifespace shares were trading at ₹351.85, offering a significant discount compared to the rights issue price of ₹257 per share. However, after adjusting for dilution (1.4x factor), the fair value per share is estimated at ₹325.98.
Despite a 24% decline in stock value in 2025, this rights issue is expected to unlock long-term value by strengthening project execution capabilities and reducing future financing constraints.
Key Dates to Remember
| Event | Date |
|---|---|
| Last Date to Buy Shares | May 22, 2025 |
| Record Date | May 23, 2025 |
| Credit of Rights Entitlements | May 26, 2025 |
| Issue Opens | June 2, 2025 |
| Last Date for Renunciation | June 12, 2025 |
| Issue Closes | June 17, 2025 |
| Basis of Allotment Finalized | June 18, 2025 |
| Shares Credited to Demat Accounts | June 19, 2025 |
| Listing on Stock Exchanges | June 20, 2025 |
Final Thoughts
Mahindra Lifespace’s ₹1,496 crore rights issue signals its confidence in India’s real estate recovery and its commitment to sustainable, large-scale development. Eligible shareholders as of May 23, 2025, should assess the attractive pricing, dilution impact, and long-term growth potential before subscribing.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.
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