Mahindra & Mahindra Ltd. received approval from Mahindra Logistics Ltd.'s board to invest up to Rs 749.3 crore in the subsidiary, according to an exchange filing on Thursday.
"The board of MLL has inter alia approved Rights Issue of Equity Shares of the face value of Rs. 10/- each at an Issue Price of Rs. 277/- per fully paid-up equity share for an aggregate amount not exceeding Rs 749,26,56,377/- assuming full subscription," the filing stated.
This will also include a premium of Rs 267 per fully paid-up equity share. M&M will subscribe to any unsubscribed portion of the rights issue at the same issue price per fully paid-up equity share up to the total Issue size of MLL.
The rights issue subscription is subject to compliance of applicable laws, such as minimum public shareholding requirements under the Securities Contract (Regulation) Rules, 1957 and SEBI (Listing Obligations and Disclosure Requirements) Regulations.
The business update was shared after market hours. The stock settled 0.05% lower at Rs 3195 apiece on the NSE, compared to a 0.40% decline in the benchmark Nifty 50. M&M's shares have risen 15.90% in the last 12 months and risen 87.58% on a year-to-date basis.
Out of 42 analysts tracking the company, 40 have a 'buy' rating on the stock and two recommend 'hold', according to Bloomberg data. The average 12-month consensus price target of Rs 3,579.1 implies an upside of 12%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
