Mahindra Lifespace Rights Issue: Real Estate Firm Plans to Raise ₹1,500 Crore

On May 14, 2025, Mahindra Lifespace shares rose over 3%, reaching a day high of ₹323.95 at 11:30 AM after opening at ₹319.30 on BSE. The gain in Mahindra Lifespace shares, the real estate and infrastructure development arm of the Mahindra Group, follows the approval from the Board to raise up to ₹1,500 crore through a Rights Issue, offering shares to eligible shareholders of the company.

Mahindra Lifespace Rights Issue: Use of Funds

Mahindra Lifespace Developers Limited (MLDL) has decided to use the proceeds from the Rights Issue to reduce existing debt and support the company’s expansion and long-term growth plans.

This fundraising will be executed under the newly amended SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2025 (“New SEBI Regulations”), which have streamlined the Rights Issue process. These reforms aim to enhance efficiency by reducing timelines, simplifying procedures, and lowering associated costs. By aligning the proposed Rights Issue with the New SEBI Regulations, MLDL intends to leverage these advantages for a more effective capital raise.

Also Read: Raymond Shares in Focus on Ex-Date for Realty Demerger, May 14

Mahindra Lifespace Recorded Growth in GDV

The residential real estate market continues to show strong momentum, with healthy demand across all key regions. Mahindra Lifespace Developers Limited (MLDL) is strategically focusing on expanding its presence in the premium and mid-premium segments, which are experiencing steady and sustainable growth, particularly in key markets like the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru.

In FY25, MLDL significantly accelerated its business development efforts, resulting in a sharp increase in Gross Development Value (GDV) additions, reaching ₹18,100 crore, compared to ₹4,400 crore in FY24. This growth has been supported by a balanced mix of internal accruals and strategic debt financing, while maintaining a strong financial position with a Net Debt-to-Equity ratio of 0.39x as of March 2025. Additionally, MLDL’s Industrial Clusters (IC) and Integrated Cities (IC) segments, with their ready-to-occupy, plug-and-play infrastructure, are well-positioned to capitalise on India’s growing manufacturing sector, benefiting from broader macroeconomic trends.

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