Mahindra Lifespace's Strategic Move: Rs 1,500 Crore Fundraising Plan to Combat Debt and Fuel Growth

Mahindra Lifespace Developers plans to raise Rs 1,500 crore via a rights issue to reduce debt and drive future growth. Recently reporting a net loss, the company aims to stabilize finances and continue its expansive real estate projects across several Indian cities.

Mahindra Lifespace Developers is gearing up to raise up to Rs 1,500 crore through a rights issue, targeting eligible shareholders to support future growth and alleviate debt. The company, a key player in the Mahindra Group's real estate and infrastructure segment, received board approval for the fundraising strategy.

The capital amassed will be strategically used to lower the company's existing debts and fuel long-term expansion, as outlined in their latest regulatory filing. This move comes in the wake of Mahindra Lifespace reporting a consolidated net loss of Rs 22.47 crore in the quarter ending December 2024, a stark contrast to a Rs 50.02 crore profit in the previous year.

Despite the financial setback, the company witnessed a substantial rise in total income, which reached Rs 185.77 crore in the third quarter of the fiscal year, up from Rs 88.77 crore in the same period the year before. With a development footprint spanning over 39 million square feet across multiple Indian cities, Mahindra Lifespace is poised for extensive growth propelled by this fundraising initiative.

(With inputs from agencies.)