Mahindra Holdings to invest INR 10.8 bln in Mahindra Susten's rights issue
This story was originally published at 14:29 IST on 12 August 2025
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--M&M step-down arm Mahindra Susten approves rights issue of INR 18 bln
--M&M arm to invest up to INR 10.80 bln in Mahindra Susten rights issue
NEW DELHI - The board of Mahindra & Mahindra Ltd.'s wholly-owned subsidiary Mahindra Holdings Ltd. has approved subscribing to the rights issue of Mahindra Susten Pvt. Ltd., a subsidiary of the latter, the auto maker said in an exchange filing on Tuesday. Mahindra Susten, a renewable energy company, will issue up to 297.95 million equity shares at INR 60.40 apiece, aggregating to INR 18 billion.
Of this, Mahindra Holdings will invest up to INR 10.8 billion through the rights issue in one or more tranches, the company said. Mahindra Susten will utilise the cash to meet its funding requirements associated with the renewable energy projects won in the 2024-25 (Apr-Mar) and FY26, which are expected to be executed soon. The investment is expected to be completed by Dec. 31.
Following the allotment to Mahindra Holdings, its holding in Mahindra Susten will increase to 413.39 million fully paid-up equity shares from 234.59 million shares previously. "However, it (the rights issue) will not cause any change in the percentage of shareholding of MHL (Mahindra Holdings) in MSPL (Mahindra Susten) and it will continue to remain the same i.e. 60.01%," it said.
For the quarter ended June, Mahindra & Mahindra reported a consolidated net profit of INR 34.50 billion on revenues of INR 341.43 billion. At 1405 IST, its shares traded 1.7% higher at INR 3,240.70 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Anand JC
Edited by Vandana Hingorani
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