Mahindra Lifespace Rises 3.2%: Last Day To Buy Shares for Rights Issue Eligibility

Shares of Mahindra Lifespace Developers Ltd. are in focus on May 22, Thursday, as it marks the record date for eligibility for the company’s Rs 1,500 crore ‘rights issue’.

During a key board meeting held last week, the company finalised the terms of the rights issue, including the issue price, entitlement ratio, record date, and other conditions.

On May 19, the company announced that May 23 would be the record date for determining shareholders eligible to receive ‘Rights Entitlements’ under its upcoming ‘Rights Issue’.

A rights issue is an offer by a listed company to its existing shareholders to buy additional shares of the company at a discounted price. The company has received the approval of the NSE and BSE stock exchanges for the rights issue, which will be open from Jun. 2 to Jun. 17.

According to the filing by Mahindra Lifespace Developers, the Board of Directors has approved a rights issue in the ratio of 3:8, offering 3 equity shares for every 8 held, at an issue price of Rs 257 per share.

The eligibility of this rights issue will be determined based on the T+1 settlement cycle. This means that investors must buy the company’s shares on or before May 22 to be recognised as shareholders on the record date and qualify for the discounted shares.

Type of Security: The company will issue fully paid-up equity shares with a face value of Rs 10 each.

Number of Shares & Total Size: A total of 5,82,20,901 shares will be issued, raising up to about Rs 1,496.28 crore (assuming all shares are subscribed).

Issue Price: Each share will be issued at Rs 257, which includes Rs 10 face value and Rs 247 as a premium.

Revenue from operations: Rs 9.2 crore versus Rs 14 crore, down 34% YoY

Net Profit: Rs 85 crore v Rs 71 crore, up 19% YoY

Pre-sales: Rs 1,055 crore, down by 2.9% YoY

Gross development value: Rs 3,650 crore in Q4FY25 versus Rs 2,040 crore in Q4FY24.

Shares of Mahindra Lifespace Developers jumped 3.17% to Rs 362.85, as of 1 p.m. today, while the Nifty 50 was trading 1.19% lower at 24,519.35. The stock has gained 10.81% over the past week and 10.96% in a month but remains down 21% year-to-date, 20% over six months, and 40% over the past year.