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Mahindra Logistics spurts on disclosing rights issue details

17-Jul-25 14:18 Hrs IST

The board, in its meeting held on July 17, approved the issuance of 2.70 crore fully paid-up equity shares at a price of Rs 277 per share, aiming to raise up to Rs 749.26 crore.

The issue price reflects a 33.40% discount to the current market price.

Eligible shareholders will receive 3 rights shares for every 8 held as of the record date, which has been set for July 23. The entire issue price will be payable at the time of application.

The Rights Entitlements (REs) will be credited to eligible shareholders' demat accounts before the issue opens on July 31. Trading of REs will close on August 11 for on-market transactions, and August 13 for off-market renunciations. The issue itself will close on August 14, unless extended. If fully subscribed, the company's outstanding equity base will expand from 7.21 crore shares to 9.91 crore shares.

A rights issue is a way for a company to raise capital by offering new shares to its existing shareholders at a discounted price.

Mahindra Logistics is a 3PL (third-party logistics) service provider mainly engaged in transportation, warehousing, supply chain management and people logistics services.

The rights issue is part of Mahindra Logistics' broader growth strategy. The funds will be used primarily for repayment and/or prepayment of borrowings by the company and its subsidiaries, as well as for general corporate purposes.

This capital raise comes at a time when India's logistics sector is undergoing a transformation, especially in Tier 2 and 3 cities, driven by infrastructure upgrades, government support, and the rapid growth of e-commerce. Mahindra Logistics is positioning itself as a key player in this space, with a network of 20.8 million sq. ft. of warehousing space, including energy-efficient facilities across India. The company plans to expand its warehousing footprint further in FY26.

Its strategy revolves around four core pillars: Integrated Solutions, Expanded Offerings, Digitisation & Technology, and Operational Excellence. With a proprietary in-house tech ecosystem and an asset-right business model, Mahindra Logistics is betting big on agility, scalability, and tech-driven logistics tailored to customer needs.

On a consolidated basis, Mahindra Logistics reported net loss of Rs 6.75 crore in Q4 March 2025 as against net loss of Rs 12.85 crore in Q4 March 2024. Net sales rose 8.19% YoY to Rs 1569.51 crore in Q4 March 2025.