Mahindra Logistics board approves Rs 750 crore rights issue; stock reacts

Mahindra Logistics Ltd (MLL) on Friday informed stock exchanges that its board has approved the issuance of fully paid-up equity shares of the company with a face value of Rs 10 each, not exceeding Rs 750 crore through a rights issue. The record date for the same will be disclosed later.

Following the development, Mahindra Logistics shares dropped 0.24 per cent to settle at Rs 378.95 on the BSE. The stock hit an intraday low of Rs 373.85 today, which was nearly 46.9 per cent below its 52-week high of Rs 549.45. That said, the scrip has performed well, rising 39.9 per cent in the past three months.

Mahindra Logistics said the funds raised from the rights issue will be utilised primarily for the repayment and prepayment, in full or in part, of all or a portion of certain borrowings obtained by the company and certain subsidiaries, as well as for general corporate purposes.

Speaking on the logistics sector, the logistics solution provider said the industry is rapidly expanding, particularly in Tier 2 and 3 cities, driven by infrastructure development, government initiatives, and e-commerce expansion. 

Customers, it said, are increasingly seeking integrated, flexible, and scalable transportation and warehousing solutions to meet their changing supply chain requirements.

“The company’s long-term strategy is anchored around four foundational pillars: Integrated Solutions, expanded offerings, digitisation and technology, and operational excellence,” Mahindra Logistics said.

“Customer-centric effort to create a platform-driven business that delivers end-to-end visibility, efficiency, agility, and resilience,” the company said.

Additionally, Mahindra Logistics board held its meeting on April 21 and proposed a final dividend of Rs 2.50 per equity share of face value of Rs 10 each for approval of members at the AGM. Today is the record date for the same. If approved, the dividend will be paid around August 20, the company told to stock exchanges.