Mahindra Group Companies to Raise Funds Worth ₹4,500 Crore via Rights Issues

Mahindra & Mahindra Financial Services Ltd (MMFSL) and Mahindra Lifespace Developers Ltd (MLDL) have announced their plans to raise a combined ₹4,500 crore through rights issues. This move aims to enhance their capital base and support expansion. Mahindra & Mahindra Ltd (M&M), the parent company, has committed to fully subscribing to its entitlement and any remaining unsubscribed shares.

Mahindra Group Companies Announce Fundraising Plans

In a regulatory filing on Thursday, 20 February, MMFSL confirmed its intention to raise up to ₹3,000 crore, while MLDL aims to secure ₹1,500 crore through rights issues. This capital infusion is expected to strengthen their financial position and aid in long-term business growth.

Mahindra & Mahindra’s Commitment to the Rights Issue

Mahindra & Mahindra Ltd (M&M) has pledged to subscribe fully to its rights entitlement in both the companies of the group i.e. MMFSL and MLDL. Additionally, the company has approved purchasing any unsubscribed portion, ensuring the completion of the total issue size.

M&M Share Performance

The shares of M&M declined in today’s session reacting to this news. As of February 21, 2025, at 3:06 PM, the shares of M&M are trading at ₹2,671.75 per share, reflecting a decline of 5.94% from the previous day’s closing price. Over the past month, the stock has registered a decline of 5.32%.

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