Mahindra & Mahindra to seek nod to raise Rs 5,000 crore

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Utility and tractor vehicle major Mahindra & Mahindra will seek shareholder approval to raise up to Rs 5,000 crore through issue of securities on private placement basis at the upcoming annual general meeting.

In its latest annual report the Mumbai-based company stated that it intends to use the funds to augment resources for the ongoing capital expenditure, long-term working capital/short term working capital and for general corporate purposes.

"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 crores, 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 10.50% p.a", said the report.

The company further clarified that the said funds would be raised "during the period of one year from the date of this annual general meeting". M&M's 69th AGM is scheduled to be held on August 7.

As on 31st March, 2015, the aggregate of the paid-up capital and free reserves of M&M stood at Rs 16,775.65 crore while its outstanding borrowings stood at Rs 3,729.26 crore. "The approval sought for offer of securities including but not limited to Non-Convertible Debentures and/or Commercial Paper, shall be within the overall borrowing limits of the company", M&M stated.