Mahindra to invest in subsidiaries' rights issues

Mahindra & Mahindra (BSE:M&M) has announced its decision to invest in the proposed rights issues of its listed subsidiaries, Mahindra & Mahindra Financial Services Limited (MMFSL) and Mahindra Lifespace Developers Limited (MLDL). The board approved subscribing to the full extent of the company's rights entitlement in both MMFSL and MLDL, and potentially acquiring additional shares up to the total issue size. This translates to a potential investment of up to Rs. 3,000 crore in MMFSL and Rs. 1,500 crore in MLDL. The final decision on the investment will be made by principal officers of the company upon receiving intimation from MMFSL and MLDL regarding the terms and conditions, including the issue price. MMFSL is a non-banking financial services company with a consolidated revenue of Rs. 15,797 crore for the year ended March 31, 2024. MLDL is a real estate development company with a consolidated revenue of Rs. 212.09 crore.