Mahindra Lifespace Developers Limited — Important, 09-02-2026: Disclosure of material issue

Mahindra Lifespace Developers (MAHLIFE) has announced a strategic restructuring of its 'Alembic Undertaking', a residential project in Bengaluru.

**Issue & Company's Response:**

The company's board, following inputs from the Audit Committee, has approved transferring this project as a slump sale (valued up to 100 Cr) to its wholly-owned subsidiary, Mahindra Blossom Developers Ltd (MBLDL). This move aims for greater operational flexibility, efficient management, and sharper execution focus for the project.

**Joint Venture & Funding:**

Simultaneously, MAHLIFE is forming a 51:49 Joint Venture for MBLDL with Mitsui Fudosan (Asia) Pte. Ltd. (MFA), a significant Japanese real estate developer. MAHLIFE will transfer 49% of its equity stake in MBLDL to MFA for 1.225 Cr.

To fund the project, MBLDL plans a rights issue of approximately 230.30 Cr, with MAHLIFE subscribing to about 117.45 Cr (51%) and MFA the remaining 49%. These actions are expected to be completed by March 31, 2026, subject to shareholder and other necessary approvals.

**Possible Impact for Investors:**

This partnership brings in external capital and shares the development risk of the Bengaluru project with a global real estate player, potentially enhancing project delivery and reducing capital burden on MAHLIFE. Leveraging MFA's expertise could also unlock further strategic advantages and growth opportunities.