Actis, Mahindra Lifespace to make partial exit worth Rs 120 cr from Mahindra Homes
Actis and Mahindra Group’s real estate and infrastructure development arm Mahindra Lifespace Developers are together making a partial exit worth over Rs 120 crore from the latter’s subsidiary Mahindra Homes.
The developer has approached the National Company Law Tribunal (NCLT) with an application to reduce its equity share capital and provide exit to both the entities. The tribunal has admitted the petition and fixed it for hearing in March.
Mahindra Homes’ petition states that the company is generating steady cash flows and intends to continue its existing business operations.
However, there are no immediate plans of expanding the business or initiating new ventures and therefore it has decided to repatriate surplus funds to shareholders.
Last year, Mahindra Lifespace Developers entered into a separate agreement to set up a joint platform for developing industrial and logistics real estate facilities across India.
The total investment in the logistics business over the initial years, including debt, is estimated to be Rs 2,200 crore. Actis will own a majority stake and Mahindra Lifespace Developers will have a significant minority stake.
According to the petition filed with the NCLT Mumbai bench, Mahindra Homes’ equity shareholders have passed a special resolution for reduction of the issued, subscribed and paid-up equity share capital from Rs 86.85 lakh to Rs 84.45 lakh.
