In a recent event, automobile aggregator Mahindra & Mahindra raised almost funds worth Rs. 475 crores through the help on Non-Convertible Debentures (NCD), here in the financial capital, Mumbai. The fundraising went ahead on a private placement basis. Although the home-grown utility and tractor, major did not disclose the details yet as in how the fund will be used and so on.
In a BSE filing by Mahindra & Mahindra, reportedly stated that the loan committee, as well as the investment department, have approved the issuance of the funds thus offering 4,750 number of rated, enlisted, unsecured, redeemable non-convertible debentures at the rate of 7.57% and that too in a secured way. It holds a face value of Rs. 10 lakhs each forwarded to aggregate Rs. 475 crores redeemable debentures on a private placement basis.
The Mumbai-based company’s tenure of the holdings will be for 10 years along with a date possessing 27th of September, 2016. But still, it is to be clarified for what exact reasons the fund has been raised or which area it will be utilised at what extent. According to reliable sources, the amount may be used for expanding the business in terms of a better business-to-consumer segment as well as to join hands with startups so as to take the travelling experience completely unhindered.
Mahindra & Mahindra Ltd. stock price stood at Rs. 1,379.85 almost Rs. 29.75 down at 2.11% by 3:00 p.m. sharp. It’s last Sensexbefore closing stood at 1409.60 INR. In the market, it opened at 1,414 INR thus making highest for the day but soon deteriorated to Rs. 1,379 after lowering up to Rs. 1,375. The market capital stood at 854.68B wherein the P/E Ratio closed at 183.71 thus dividends yielding at the rate of 0.87%.