Approval to Invest in the proposed Rights Issue of Mahindra Logistics Limited, a Listed Subsidiary of the Company
M&M · price
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Mahindra & Mahindra (M&M) has approved investing in the proposed Rights Issue of its listed subsidiary, Mahindra Logistics Limited (MLL). MLL's Board has approved issuing equity shares at Rs. 277 per share (face value Rs. 10, premium Rs. 267) for an aggregate amount not exceeding Rs. 749.27 crore. M&M will subscribe to its full Rights Entitlement and has also approved subscribing to additional shares and any unsubscribed portion of the issue, subject to Minimum Public Shareholding norms. The full issue price is payable at the time of application.
This signals strong promoter support for MLL's capital raise, with M&M willing to backstop the entire Rs. 749.27 crore rights issue. For M&M shareholders, this means additional capital commitment into the subsidiary, while MLL shareholders see a fully backed rights issue that reduces subscription risk.