Key Highlights
- SML Mahindra approved a rights issue of up to ₹1,450 crore.
- The issue will comprise fully paid-up equity shares with a face value of ₹10 each.
- The rights issue will be offered to eligible existing shareholders.
- The record date and rights entitlement ratio are yet to be announced.
- The issue price and number of shares will be determined after in-principle stock exchange approval.
- The fundraising is subject to regulatory and statutory approvals.
SML Mahindra Limited has approved raising up to ₹1,450 crore through a rights issue of equity shares, following a Board of Directors meeting held on November 6, 2026.
The company informed the stock exchanges that its board approved the issuance of fully paid-up equity shares with a face value of ₹10 each to eligible existing shareholders. The proposed rights issue will be subject to applicable regulatory and statutory approvals.
A rights issue is a method through which a company raises additional capital by offering new shares to its existing shareholders, usually in proportion to their current shareholding. Eligible shareholders are given the right to purchase these shares at a price determined by the company within a specified subscription period. Shareholders can choose whether to participate in the issue. Companies generally use the funds raised through rights issues for business expansion, debt repayment, working capital requirements and other corporate purposes.
The rights issue will be offered to eligible equity shareholders as of a record date, which will be determined and announced by the company at a later stage.
The company stated that the detailed terms of the issue, including the issue price, rights entitlement ratio, record date, issue period and payment schedule, will be decided by the Board or its Rights Issue Committee.
The number of equity shares to be issued and the issue price will be determined after receiving in-principle approval from the stock exchanges. SML Mahindra, formerly known as SML Isuzu Limited, operates in the trucks and buses segment.