Mahindra & Mahindra Boosts Stake in Mahindra Lifespaces to 52.43% via Rights Issue

Mahindra & Mahindra Ltd (M&M) has announced a significant increase in its stake in Mahindra Lifespaces Developers Ltd (MLDL). The company has allotted over 5.81 crore fully paid-up equity shares as part of its recently concluded rights issue. Each share has a face value of Rs 10 and was issued at Rs 257 apiece, including a premium of Rs 247 per share.

The allotment was approved by the Rights Issue Committee of MLDL at a meeting held on June 18, 2025, as per a regulatory filing. M&M received 3,24,86,158 shares as part of this issuance. These shares will be credited to M&M’s demat account according to the timelines laid out in SEBI’s circular dated March 11, 2025.

Out of the 5,81,53,156 fully paid-up equity shares of Rs 10 face value each allotted by MLDL to eligible shareholders and/or renouncees, M&M has been allotted 3,24,86,158 fully paid-up equity shares of Rs 10 face value each. Following the allotment, M&M’s shareholding in MLDL has increased from 7,93,19,550 to 11,18,05,708 fully paid-up equity shares. As a result, M&M’s ownership stake in MLDL has risen from 51.14% to 52.43%.

Mahindra Lifespaces Developers is a prominent player in the real estate development sector. Along with its subsidiary companies and joint ventures (JVs), MLDL is engaged in developing residential projects as well as industrial developments, including integrated cities and industrial clusters. For the financial year ended March 31, 2025, the consolidated revenue from operations of MLDL stood at Rs 372.27 crore, with a net worth of Rs 1,896.10 crore as of March 31, 2025.

This strategic move by M&M to increase its stake in MLDL underscores the company's commitment to strengthening its presence in the real estate sector. It is expected to enhance MLDL’s financial stability and support its growth initiatives, particularly in the development of integrated cities and industrial clusters. The increased stake also aligns with M&M’s broader strategy to diversify its portfolio and capitalize on the growing demand for residential and industrial real estate in India.