Mahindra Logistics is raising Rs 750 crore through the Rights Issue. In a filing exchange, the company said on Friday that the Board of Directors has approved the raising of fresh funds through the offer and issuance of fully paid-up equity shares.
Mahindra Logistics said that it is raising funds primarily for the repayment or prepayment of certain borrowings by the company and its certain subsidiaries. The company also added that it intends to utilise the raised funds for general corporate purposes as well.
The company hasn’t disclosed the rights issue price as of now. In a statement, Mahindra Logistics said that its board or the Rights Issue Committee will decide the Rights Issue Price, Rights Entitlement Ratio, timing of the Rights Issue, record date, and other matters in due course of time.
Mahindra Logistics focus on tier-2, tier-3 market
In a press statement, Mahindra Logistics added that the company is looking to harness the business potential emerging from the tier-2 and tier-3 cities of India. The tier-2 and tier-3 cities are showing huge potential in infrastructure growth and e-commerce, and the logistics industry customers are looking for an integrated logistics and warehousing solution in those regions.
Mahindra Logistics says that it is well prepared to address the logistics demand coming from the tier-2 and tier-3 cities. The company says that it has a vast network of 20.8 million square feet of warehouse space throughout the country, and it is empowered with an in-house tech solution for supply management.
The company says that it has the capability to provide an end-to-end solution for the customer demands coming from the tier-2 and tier-3 cities. While handling 400 corporate customers, the company has developed a speciality in warehousing, mobility solutions, cross-border logistics, B2B transportation, and last-mile delivery.