Mahindra Logistics To Raise Up To Rs 750 crore To Repay Debt

Mahindra Logistics Ltd (MLL) informed the stock exchange in a filing on Friday that its board of directors has approved raising Rs 750 crore through a rights issue.

The funds raised 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, the filing stated.

Advertisement

However, the company has yet to disclose the price of the rights issue, but stated that its board will decide the price of the rights issue, the rights entitlement ratio, timing of the rights issue, its record date, and other matters shortly.

According to a press statement, Mahindra Logistics mentioned that it is looking to harness the business potential emerging from tier-2 and tier-3 cities. which have begun to show huge potential in infrastructure growth and e-commerce, since corporate customers are looking for an integrated logistics and warehousing solution in those regions.

The company mentioned that it is well prepared to address the logistics demand from the tier-2 and tier-3 cities since it has a vast network of 20.8 million square feet of warehouse space throughout the country, with an in-house tech solution for supply chain management.

The company stated that it has the capability to provide end-to-end solutions to meet customer demands in tier-2 and tier-3 cities in the course of serving 400 corporate customers.

The company has developed a specialty in warehousing, mobility solutions, cross-border logistics, B2B transportation, as well as last-mile delivery, the company statement mentioned.