Shareholders okay M&M''s fund-raising plan

Mumbai: Shareholders of automobile major Mahindra and Mahindra have given their approval to the company''s plans to raise up to Rs1,350 crore for launching new products, capacity expansion and acquisitions.

The board of M&M has been authorised to offer securities (in both equity and debt or both classes) to raise up to $300 million (Rs1,230 crore at current exchange rate) from international markets, public offering or on private placement basis.

The issue of securities, subject to statutory approvals, would carry an over-allotment option of up to 15 per cent of the amount of the initial offer in a single tranche.

Additionally, shareholders also authorised the M&M board to raise Rs 900 crore through the issue of shares, debentures (convertible to equity) to Qualified Institutional Buyers (QIBs), Mahindra and Mahindra informed the BSE.

However, the total amount to be raised from the proposed offer of securities and to QIBs would not in the aggregate exceed a sum of Rs 1350 crore, it had earlier said.

The company use the funds so raised for research and development, new products, balancing equipment, capacity expansion, absorption of new technology, investments, joint ventures and acquisitions, M&M had earlier said.

Shareholders accorded their approval to the proposals by way of a postal ballot.