Automobile News

Mahindra Seeks Shareholder Nod To Raise Rs 5,000 Crore

Mahindra Seeks Shareholder Nod To Raise Rs 5,000 Crore

New Delhi: Auto major Mahindra & Mahindra will seek approval of its shareholders for raising up to Rs 5,000 crore from domestic and international markets by issuing securities on a private placement basis.

The company would spend the money “to augment resources for, inter alia, the ongoing capital expenditure, long term working capital/short term working capital and for general corporate purposes”, it said in a filing to the BSE.

For this, the company would seek shareholders’ nod by a special resolution at its annual general meeting to be held on August 10, it said.

“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,” the filing said.

Last year too, M&M had received shareholders’ approval to raise the similar amount but it did not go ahead with the fund raising plan.

“Approval sought at the last Annual General Meeting held on August 7, 2015, has a validity of one year and under which, the Company has till date not issued any securities,” the filing said.