Mahindra Logistics Plans ₹750 Crore Rights Issue to Repay Debt and Expand in Smaller Cities

Mahindra Logistics announced that it will raise ₹750 crore by issuing new shares through a rights issue. The Board of Directors has approved this fundraising plan.

In its exchange filing on Friday, the company explained that the funds will mainly be used to repay or prepay loans taken by Mahindra Logistics and some of its subsidiaries. Part of the money will also go toward general corporate purposes to support daily operations and growth plans.

Details Yet to Be Finalised

The company has not yet decided the price at which the rights issue shares will be offered.

Mahindra Logistics clarified that important details, such as:

• Rights Issue Price,
• Rights Entitlement Ratio (how many shares existing shareholders can buy),
• Record Date, and
• Timing of the Issue

will be decided later by the board or a Rights Issue Committee.

Focus on Tier-2 and Tier-3 Cities

Mahindra Logistics shared that it is increasingly focusing on tier-2 and tier-3 cities, where demand for logistics services is growing rapidly.

The company said these smaller cities have:

• Fast-growing infrastructure development,
• A surge in e-commerce activity, and
• Customers who want integrated logistics and warehousing solutions.

Mahindra Logistics believes it is well prepared to handle this demand, thanks to:

• A network of 20.8 million square feet of warehouse space, and
• An in-house technology platform for supply chain management.

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Strong Capabilities Across Logistics Segments

The company highlighted that it serves around 400 corporate clients and has expertise in multiple logistics areas, including:

• Warehousing,
• B2B transportation,
• Mobility solutions,
• Cross-border logistics, and
• Last-mile delivery.

By tapping into opportunities in smaller cities, Mahindra Logistics aims to expand its customer base and drive growth.

Mahindra Logistics Share Price Movement

Mahindra Logistics share price was ₹379.00 at 3:03 PM on July 11, down 0.25%. During the day, the stock opened at ₹380.50, touched a high of ₹383.75 and a low of ₹374.75. 

The company has a market capitalisation of ₹2,730 crore. It does not have a listed P/E ratio, and the dividend yield stands at 0.66%. Over the past year, the stock has traded between a 52-week high of ₹549.25 and a 52-week low of ₹238.20. The quarterly dividend amount is ₹0.63 per share.

Conclusion

Mahindra Logistics’ plan to raise ₹750 crore through a rights issue shows its commitment to strengthening its balance sheet by repaying debt while also preparing to tap into the booming logistics market in India’s tier-2 and tier-3 cities. As the rights issue details are finalised, investors and customers will watch closely to see how this strategy fuels the company’s next phase of expansion.

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