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The company’s board approved transferring the ‘Alembic Undertaking’—a residential real estate project in Bengaluru—along with related assets and liabilities, to its wholly-owned subsidiary, Mahindra Blossom Developers Ltd (MBLDL), via a slump sale. Slump sale means the transfer is as a whole without allocating value to individual assets or liabilities.
MBLDL was incorporated on 2 Jan 2026 with authorized share capital of Rs. 90 crore and paid-up capital of Rs. 2.5 crore. It has no turnover as of now and is engaged in residential real estate business.
Post transfer, the company plans to sell 49% equity in MBLDL to MFA, a reputed Japanese real estate developer, through shareholder and investment agreements. MFA does not belong to the promoter group.
The consideration for the slump sale is a net amount not exceeding Rs. 100 crore. There will be a rights issue of 23.03 crore equity shares in MBLDL valued at Rs. 230.3 crore (face value Rs. 10 each), subscribed by the company and MFA in the ratio of 51:49.
After equity transfer and rights issue, the company will hold 51% and MFA 49% in MBLDL. Board composition will allow nomination of directors by both parties ensuring joint oversight.
This restructuring is aimed at operational flexibility and focused management to execute the Bengaluru project more efficiently. The joint venture with Mitsui may be seen as bringing in global partnership and funding support.
The transaction is subject to shareholder and other regulatory approvals. It qualifies as a related-party transaction but is confirmed to be on an arm’s length basis backed by an independent valuation.
In summary, the company is restructuring its Bengaluru real estate project under a dedicated subsidiary and entering a joint venture with an international partner by transferring equity and raising capital through rights issue, potentially signaling strategic focus and collaboration to investors.