Mahindra Lifespace confirms appropriate use of rights issue funds

Mahindra Lifespace Developers Limited has published its monitoring agency report for the quarter ended September 30, 2025, confirming the appropriate utilization of funds raised through its rights issue. The report, issued by CARE Ratings Limited, states that the proceeds from the rights issue, totaling INR 1496.28 crore, were used for the objects mentioned in the offer document dated May 19, 2025. The monitoring agency declared "Nil" deviation from the objects and range of deviation.

Key utilization figures for the quarter include INR 1005.00 crore for repayment and prepayment of borrowings, and INR 229.04 crore for funding acquisitions of future real estate projects, land parcels, and development rights. Additionally, INR 3.46 crore was allocated to issue-related expenses. The report highlights that INR 26.70 crore of the total proceeds remains unutilized.

The unutilized amount is partially deployed in fixed deposits with Kotak Mahindra Bank (INR 26.65 crore) earning a 5% return and a monitoring account (INR 0.05 crore). The remaining funds are earmarked for future land acquisitions, general corporate purposes, and issue expenses. The board of directors noted that all utilization aligns with the stated objects, with no major deviations observed.