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Mahindra to raise Rs 5000cr

Mahindra to raise Rs 5000cr

 

Tractor and utility vehicle major Mahindra & Mahindra is seeking to pass an enabling resolution to raise funds through issuance of securities on private placement basis in domestic and/or international market.

M&M said it intends to use the funds to augment resources for ongoing capital expenditure, short- and long-term working capital and for general corporate purposes. A special resolution will be passed for this purpose at the company's annual general meeting to be held on August 10.

"The company seeks to pass an enabling resolution to borrow funds from time to time by offer of securities, including but not limited to, Non-Convertible Debentures and/or Commercial Paper for an amount not exceeding Rs 5,000 crore, at a discount or at par or at a premium and at such interest as may be appropriate considering the prevailing money market conditions at the time of the borrowing but not exceeding 10 per cent p.a.", said the company in a filing with the Bombay Stock Exchange.

Last year too the Mumbai-based automaker had sought shareholder's approval to raise the same amount. At the end of financial year 2014-15 the company had outstanding borrowings of Rs 3,729 crore while at the end of last financial year the same stood at Rs 2917 crore, as per the disclosures.