Mahindra Lifespace launches rights issue to raise Rs300 crore
New Delhi: Real estate firm Mahindra Lifespace Developers Ltd launched on Wednesday its rights issue to raise Rs300 crore.
The company will sell 10.2 million shares at Rs292 each to eligible shareholders in the ratio of one share for every four held. The issue closes on 26 April.
The last date for receipt of application forms is 19 April.
The company will use the money primarily to redeem non-convertible debentures.
Mahindra Lifespace Developers had filed draft papers with the Securities and Exchange Board of India (Sebi) in January to raise funds through a rights issue and the regulator had issued its ‘observation’ on 2 March, which is necessary for any company to launch a public offering.
The shares will be listed on BSE and National Stock Exchange of India.
ICICI Securities Ltd is managing the rights offer.
Mahindra Lifespace Developers, part of the $17.8 billion Mahindra Group, is developing around 9.60 million sq. ft of residential projects across the country including in the Mumbai Metropolitan Region, National Capital Region, Hyderabad, Bengaluru and Chennai.
Mahindra Lifespace has also entered the affordable housing segment under the brand ‘Happinest’.
Earlier this year, Mahindra Lifespace signed a memorandum of understanding with the Gujarat government to set up an industrial park near Ahmedabad with a total investment of Rs3,000 crore. Currently, it operates two industrial townships—Mahindra World City Chennai and Mahindra World City Jaipur. Both these townships span over 4,000 acres and houses around 130 Indian and multinational companies.
Mahindra Lifespace is also in the process of developing a 264-acre industrial park in North Chennai in partnership with Japanese conglomerate Sumitomo Corp.