In a significant move to bolster its subsidiaries, Mahindra & Mahindra Limited (M&M) announced on February 20, 2025, that its Board of Directors has approved investments in the rights issues of two of its listed subsidiaries: Mahindra & Mahindra Financial Services Limited (MMFSL) and Mahindra Lifespace Developers Limited (MLDL). This strategic decision underscores M&M’s commitment to supporting the growth and expansion of its key businesses.
Key Highlights of the Investment Plan
M&M will fully subscribe to its rights entitlement in both MMFSL and MLDL. Additionally, the company may also invest in additional shares or any unsubscribed portion of the rights issues, up to the total issue size. The final decisions regarding these investments will be made by certain principal officers of M&M, who have been delegated the authority to act upon receiving the terms and conditions of the rights issues, including the issue price, from MMFSL and MLDL.
Mahindra & Mahindra Financial Services Limited (MMFSL)
MMFSL, a leading non-banking financial company (NBFC) in India, has been a cornerstone of M&M’s financial services arm. Here’s a closer look at MMFSL’s performance and operations:
-
Financial Performance: For the year ended March 31, 2024, MMFSL reported a standalone revenue from operations of Rs. 13,404 Crore and a consolidated revenue of Rs. 15,797 Crore. Its standalone net worth stood at Rs. 18,157 Crore, while the consolidated net worth was Rs. 19,933 Crore.
-
Business Focus: MMFSL primarily serves the rural and semi-urban sectors, financing the purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment, and SME financing. It also caters to the investment and insurance needs of its customers.
-
Customer Reach: With over 10 million customer contracts since its inception, MMFSL has a vast network of 1,375 offices across 27 states and 7 union territories. It has served customers in 19,070 out of the 19,745 pin-codes in India.
-
Assets Under Management (AUM): As of December 2024, MMFSL’s Business AUM stood at an impressive Rs. 115,126 Crores.
-
Investment Plan: M&M will invest up to Rs. 3,000 crores in MMFSL’s rights issue, reinforcing its confidence in the subsidiary’s growth trajectory.
Mahindra Lifespace Developers Limited (MLDL)
MLDL, M&M’s real estate development arm, has been instrumental in shaping India’s urban and industrial landscape. Here’s a snapshot of MLDL’s achievements and future plans:
-
Financial Performance: For the year ended March 31, 2024, MLDL reported a standalone revenue from operations of Rs. 18.69 Crore and a consolidated revenue of Rs. 212.09 Crore. Its standalone net worth was Rs. 1,541.60 Crore, while the consolidated net worth was Rs. 1,789.84 Crore.
-
Development Portfolio: MLDL has a robust development footprint, spanning 39.44 million sq. ft. of completed, ongoing, and forthcoming residential projects across 7 Indian cities. Additionally, it manages over 5,000 acres of ongoing and forthcoming projects under its integrated developments and industrial clusters across four cities.
-
Brand Portfolio: MLDL’s offerings include premium residential projects, value homes under the ‘Mahindra Happinest®’ brand, and integrated cities and industrial clusters under the ‘Mahindra World City’ and ‘Origins by Mahindra’ brands.
-
Investment Plan: M&M will invest up to Rs. 1,500 crores in MLDL’s rights issue, further strengthening its position in the real estate sector.
