Actis, a prominent global investment firm, and Mahindra Lifespace Developers, the real estate and infrastructure development arm of the Mahindra Group, are collectively initiating a partial exit valued at more than Rs 120 crore from Mahindra Homes, a subsidiary of the latter.
The developer has applied to the National Company Law Tribunal (NCLT), seeking a reduction in its equity share capital to facilitate an exit for both entities. The tribunal has accepted the petition, scheduling a hearing for March.
According to the petition from Mahindra Homes, the company reports consistent cash flows and expresses its commitment to sustaining current business operations. While there are no immediate plans for business expansion or new ventures, the decision has been made to repatriate surplus funds to shareholders.
In the previous year, Mahindra Lifespace Developers forged a distinct agreement to establish a collaborative platform for the development of industrial and logistics real estate facilities throughout India.
The comprehensive investment in the initial years for the logistics business, encompassing debt, is anticipated to reach Rs 2,200 crore. Actis is poised to hold a majority stake, while Mahindra Lifespace Developers will retain a substantial minority stake in the venture.
As outlined in the petition presented to the NCLT Mumbai bench, Mahindra Homes' equity shareholders have formally approved a special resolution for the reduction of the issued, subscribed, and paid-up equity share capital from Rs 86.85 lakh to Rs 84.45 lakh. The disbursement to Actis and Mahindra Lifespace Developers will be sourced from the accumulated cash reserve exceeding Rs 125 crores.
The company is planning to reduce equity capital from 822,507 Series A equity shares, 23043 Series B equity shares and 23,043 Series C equity shares to 822,507 Series A equity shares, 11,043 Series Series C equity shares, by cancelling and extinguishing more than half of Series B and Series C paid-up equity share capital.
Mahindra Lifespace Developers had incorporated the special purpose vehicle Mahindra Homes in June 2010 with an objective to develop residential projects in key markets across India.
As of the end of September, the company's authorized equity share capital was recorded at Rs 1.88 crore. The joint venture was established with an equal economic interest split of 50:50 between Mahindra and Actis.
The joint venture, characterized by an equal equity partnership, has successfully concluded and delivered a residential project in Bengaluru. Furthermore, the company is actively engaged in the final phase of a residential project in Gurgaon, with an anticipated handover within the next two years.
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