Mahindra Logistics Limited (MLL) announced today that its Board of Directors has approved an investment of up to ₹50 crore in its wholly-owned subsidiary, MLL Express Services Private Limited (MESPL). The investment will be made through a rights issue of 5 crore equity shares at ₹10 per share, payable in cash.
The capital infusion is aimed at meeting MESPL’s working capital needs, supporting its ongoing operations, and funding general corporate purposes. MESPL, which operates B2B express logistics services under the brand name “Rivigo by Mahindra Logistics,” reported a turnover of ₹364.22 crore for FY 2023-24.
The transaction is considered a related party transaction, given MESPL’s status as a wholly-owned subsidiary, but it falls under the arm’s length exemption as per SEBI regulations. This investment will not affect MLL’s existing 100% ownership of MESPL.
MESPL’s business spans a wide PAN India network, covering over 19,000 pin codes and 220 processing centers, continuing its expansion after acquiring Rivigo’s B2B express part-truck-load business in November 2022.
The investment is expected to be completed by December 31, 2024.
