M&M to seek shareholders nod to raise up to $780M

Auto major Mahindra & Mahindra will seek shareholders' approval to raise up to Rs 5,000 crore through issuance of securities on private placement basis in domestic and/or international markets.

In a BSE filing, 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.

"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," it said.

M&M said the fund would be raised "during the period of one year from the date of this Annual General Meeting (AGM)." The company's AGM will be held on August 7.

The company will consider securities will be issued under private placement basis, in domestic and/or international market, in one or more series/tranches" for the purpose.

M&M said the offer of securities shall be within the overall borrowing limits of the company.

As on March 31, the company had outstanding borrowings of Rs 3,729.26 crore.

M&M stock was trading at Rs 1,249.40, down 1.30 per cent, on the BSE in the afternoon.

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