The stock of M&M slipped as much as 6.07% to ₹2,667 on the NSE amid a decline in auto stocks.
Hence, the total fund raised will be ₹4,500 crore.
A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market.
M&M said its board of directors has approved the following.
To subscribe to the equity shares of MMFSL and MLDL to the full extent of the company’s rights entitlement; and
To subscribe to additional shares as well as to any unsubscribed portion of the rights issue(s) up to the total issue size.
The filing further said the standalone and consolidated revenue from operations of MMFSL for the year ended March 31, 2024, was ₹13,404 crore and ₹15,797 crore, respectively.
The standalone and consolidated net worth of MMFSL as of March 31, 2024, was ₹18,157 crore and ₹19,933 crore, respectively.
Meanwhile, Mahindra Lifespace Developers Limited (MLDL) is engaged in real estate development. Along with its subsidiary companies and joint ventures (JVs), MLDL is engaged in developing residential projects as well as industrial developments—integrated cities and industrial clusters.
The standalone and consolidated revenue from operations of MLDL for the year ended 31st March 2024 was ₹18.69 crore and ₹212.09 crore, respectively.
The standalone and consolidated net worth of MLDL as of March 31, 2024, was ₹1,541.60 crore and ₹1,789.84 crore, respectively.
The indicative time period for completion of the acquisition would depend on the timeline of proposed Rights Issue of the companies, the regulatory filing said further.
