Mahindra Logistics To Raise ₹750 Crore Via Rights Issue, Focus On Growth & Debt Reduction

Mahindra Logistics To Raise ₹750 Crore Via Rights Issue, Focus On Growth & Debt Reduction

Mahindra Logistics Ltd. has approved a Rs 750 crore rights issue to support debt repayment and business expansion, focusing on warehousing growth, digital solutions, and integrated logistics services to meet rising demand across India.

FPJ Web DeskUpdated: Friday, July 11, 2025, 01:46 PM IST
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Mumbai: Mahindra Logistics Limited (MLL), one of India’s largest integrated logistics companies, has announced that its Board of Directors has approved raising up to Rs 750 crore through a Rights Issue. This offer will be extended to existing shareholders of the company.

The move comes as MLL aims to strengthen its financial position and support its long-term strategic goals. A key portion of the funds raised will be used to repay or prepay existing loans, both of the company and some of its subsidiaries. The remaining funds will go towards general corporate needs.

Sector Growth and Company Positioning

India’s logistics sector is growing fast, especially in Tier 2 and Tier 3 cities, driven by infrastructure projects, government support, and booming e-commerce. MLL is in a strong position to meet this rising demand with:

- A 20.8 million sq. ft. warehousing network across India

- Over 5 million sq. ft. of multi-client, energy-efficient warehouses

- Planned expansions in FY 2025-26 to further strengthen its reach and efficiency

Business Strategy and Model

MLL follows a long-term strategy built on four pillars:

- Integrated Logistics Solutions

- Expanding Offerings

- Digitisation & Technology

Operational Excellence

These pillars support a platform-driven business model designed to offer end-to-end visibility, flexibility, and scalability for clients across industries.

The company leverages its in-house tech ecosystem to develop customized, tech-enabled logistics solutions. Operating on an asset-light model, MLL works with a vast network of local business associates, which enables it to scale faster and adapt locally across India.

With the fresh funds from the rights issue, MLL plans to accelerate its transformation into a more digitally empowered and operationally agile logistics player, supporting India's growing supply chain needs more efficiently.

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