SML Mahindra’s board has approved raising up to ₹1,450 crore through a rights issue of fully paid-up equity shares. Parent Mahindra & Mahindra may invest up to ₹1,450 crore, including through additional subscription, while the transaction is not expected to result in any change in control of SML.
New Delhi, November 6 — SML Mahindra Ltd has announced plans to raise up to ₹1,450 crore through a rights issue, as the commercial vehicle manufacturer looks to issue new equity shares to its existing eligible shareholders.
The company’s board approved the fundraising proposal at its meeting held on November 6, according to a regulatory filing.
Under the proposal, SML Mahindra will issue fully paid-up equity shares with a face value of ₹10 each to eligible equity shareholders through a rights issue.
The total amount to be raised through the exercise will not exceed ₹1,450 crore.
Mahindra & Mahindra may invest up to ₹1,450 crore
In a separate regulatory filing, parent company Mahindra & Mahindra (M&M) said it will participate in the proposed rights issue.
The investment will be made at the price determined by SML Mahindra and specified in the rights issue offer document.
M&M said its aggregate investment, including any additional subscription, will not exceed ₹1,450 crore.
The final number of shares to be acquired by M&M and its resulting percentage shareholding will be determined after the allotment of shares under the rights issue.
However, M&M clarified that no change in control of SML Mahindra is envisaged following the transaction.
SML operates in commercial vehicle segment
SML Mahindra is a listed subsidiary of Mahindra & Mahindra and operates primarily in the intermediate and light commercial vehicle (ILCV) and bus segments.
For the financial year ended March 31, 2026, SML Mahindra reported revenue from operations of ₹2,837.92 crore.
The company’s net worth stood at ₹519.34 crore as of March 31, 2026.
A rights issue allows a listed company to raise additional capital by offering new shares to its existing shareholders, generally in proportion to their current holdings and according to terms specified in the offer document.
SML Mahindra has not yet disclosed the final number of shares to be issued or the issue price in the information provided.
These details will determine the final shareholding structure following completion of the fundraising exercise.
The proposed ₹1,450 crore rights issue represents a significant fundraising exercise for SML Mahindra compared with its reported net worth of ₹519.34 crore at the end of FY26.
