Mahindra & Mahindra plans to raise Rs 1,000 crore via NCDs

Indian multinational car manufacturing corporation, Mahindra & Mahindra, announced today that it is planning to raise Rs 1,000 crore through the allotment of non-convertible debentures.

In a regulatory filing made during the market hours, the company informed that its loan & investment committee, in a meeting held today, has approved the issuance and offer of 10,000 rated, listed, unsecured, redeemable, 6.65 per cent non-convertible debentures (NCDs) of a face value of Rs 10,00,000 each, at par, aggregating to Rs 1,000 crore on private placement basis.

Adding to this, the company said that the tenure of the investment will be of three years. The NCDs will be listed on BSE, offering a coupon rate of 6.65 per cent, per annum. However, Mahindra & Mahindra did not disclose the reason to raise this capital.

This comes at a time when the corporates are facing a liquidity crunch due to the lockdown imposed in the country to prevent the spread of Coronavirus.

At the time of market closing on Friday, the stock of Mahindra & Mahindra Ltd was trading at Rs 363.20, up by 1.78 per cent against its previous close of Rs 356.85. Its 52-week high is Rs 691.15 while, its 52-week low is Rs 245.80 on BSE.