M&M inches up after raising funds for capex plans

The announcement was made after market hours on Wednesday, 3 July 2013.

Meanwhile, the S&P BSE Sensex was up 145.82 points or 0.76% at 19,323.58.

On BSE, 1,329 shares were traded in the counter as against average daily volume of 1.04 lakh shares in the past one quarter.

The stock hit a high of Rs 987 and a low of Rs 984.10 so far during the day. The stock had hit a record high of Rs 1,026.45 on 20 May 2013. The stock had hit a 52-week low of Rs 675.10 on 25 July 2012.

The stock had outperformed the market over the past one month till 3 July 2013, rising 0.48% compared with the Sensex's 2.21% fall. The scrip had also outperformed the market in past one quarter, jumping 15.81% as against Sensex's 2% rise.

The large-cap utility vehicles and tractors maker has equity capital of Rs 307.94 crore. Face value per share is Rs 5.

Mahindra & Mahindra (M&M) said that the non-convertible debentures (NCDs) will be unsecured, rated, listed, redeemable at the end of 50th year and will carry a coupon of 9.55% per annum payable annually. This is the first ever INR-denominated NCD issue with a 50-year bullet maturity offered by an Indian corporate, M&M said. The proceeds of this issue will be used for capital expenditure (capex), long term working capital requirements and refinancing of loans taken for capex, M&M said. Credit Rating Agencies, CRISIL and ICRA have assigned AA+/stable rating to the issue, the company said.

M&M's net profit rose 1.7% to Rs 889.19 crore on 12% growth in net sales to Rs 10353.38 crore in Q4 March 2013 over Q4 March 2012.

The Mahindra Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheeler industries.

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