Mahindra Logistics To Come With Rs 750 Crore Rights Issue

Mumbai, July 11, 2025 – Mahindra Logistics Ltd (NSE: MAHLOG | BSE: 540768) reported today that its Board of Directors has approved a ₹750 crore rights issue. The goal is to improve the company’s financial situation by lowering debt and supporting expansion plans. The record date for this capital offering, which is still to be announced, will be open to qualifying equity stockholders. The company is doing its first rights issuance in a long time, and it shows that management wants to improve the balance sheet since investors are worried about its high debt-equity ratio, which is said to be approximately 1.98×, one of the highest among mid-cap logistics companies.

This rights issue fits with Mahindra Logistics’ overall financial plan. Just a few months ago, in April 2025, the company reported a 67% year-over-year increase in standalone PAT to ₹13.12 crore for the quarter ending in March. However, full-year standalone PAT fell 30% to ₹43.50 crore, and consolidated revenue rose 11% to ₹5,013 crore. As of the latest session Mahindra Logistics shares were trading at ₹379.60 down 0.35 or 0.092% .

Rights Issue Details

The issue will consist of fully paid-up equity shares of face value ₹10 each. The exact pricing, ratio, and timing of the rights issue will be determined by the Rights Issue Committee in due course, subject to approvals under SEBI (ICDR) Regulations, 2018 and other applicable laws. As part of its recent business moves, the company also added more services through its subsidiary MLL Express Services (MESPL). It put up to ₹35–50 crore through MESPL’s rights issue to help the expansion of express logistics under the “Rivigo by Mahindra Logistics” brand. In FY24, MESPL made about ₹364 crore in sales and is still growing quickly.

Use of Proceeds

According to the company, the primary objectives of the rights issue include:

• Repayment and/or prepayment of borrowings of the company and certain subsidiaries.
• General corporate purposes to support business expansion and operational requirements.

Strategic Rationale

Mahindra Logistics is targeting Tier 2 and Tier 3 cities, leveraging India’s infrastructure push and e-commerce growth. The company currently operates 20.8 million sq. ft of warehousing space, including over 5 million sq. ft of energy-efficient multi-client warehousing infrastructure, with further expansion planned in FY26.

The rights issue aligns with MLL’s long-term strategy focused on:

• Integrated logistics solutions
• Expanded offerings across verticals
• Digitisation and proprietary technology
• Operational excellence through scalable and asset-right models

Management Commentary

MLL highlighted its technology-driven, asset-light model as a key differentiator in providing flexible and scalable logistics solutions. The company serves over 400 corporate clients across verticals such as automotive, engineering, consumer goods, and e-commerce.

About the Company

Mahindra Logistics Limited is a publicly traded third-party logistics (3PL) company that provides full supply chain solutions and enterprise mobility services. The Mahindra Group owns the company and is a pioneer in farm equipment, utility vehicles, and technological services around the world. The NSE and BSE both trade MLL’s shares.

REF: https://nsearchives.nseindia.com/corporate/MAHLOG18_11072025130543_SEIntimationPostBM11Jul2025.pdf

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