Actis, Mahindra Lifespace to pare stake worth Rs 120 crore from Mahindra Homes

7 Dec 2023 , 02:14 PM

Actis, a global investment firm, and Mahindra Group’s real estate and infrastructure development arm Mahindra Lifespace Developers have agreed to a partial withdrawal from Mahindra Homes, the latter’s subsidiary.

The developer has applied to the National Company Law Tribunal (NCLT) for a reduction in its equity share capital and an exit for both businesses. The tribunal has accepted the petition and scheduled a hearing for March.

According to Mahindra Homes’ petition, the firm is producing consistent cash flows and expects to maintain its current business activities. However, because there are no imminent plans to grow the firm or launch new projects, the company has opted to return surplus cash to shareholders.

Mahindra Lifespace Developers signed a separate deal last year to establish a collaborative platform for building industrial and logistics real estate facilities across India.

The initial investment in the logistics sector, including loans, is anticipated to be Rs 2,200 crore. Actis will control the bulk of the company, with Mahindra Lifespace Developers holding a large minority share.

Mahindra Homes’ equity shareholders approved a special resolution to reduce the issued, subscribed, and paid-up equity share capital from Rs 86.85 lakh to Rs 84.45 lakh, according to the plea filed with the NCLT Mumbai bench. Actis and Mahindra Lifespace Developers will both be paid out of a total cash payment of more than Rs 125 crore.

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