M&M plans to raise another Rs 1,000 crore; stock slips

The stock of car manufacturer Mahindra & Mahindra (M&M) slipped more than three per cent today after the company announced that it is planning to raise another Rs 1,000 crore via bonds.

Last week, the company had listed similar rated, unsecured, redeemable non-convertible debentures (NCDs) worth Rs 1,000 crore on BSE at a coupon rate of 6.65 per cent per annum. Later on, India Ratings & Research assigned ‘IND AAA’ rating with a stable outlook to these bonds. Read it here:

https://www.dsij.in/DSIJArticleDetail/ArtMID/10163/ArticleID/12472/Mahindra-Mahindra-plans-to-raise-Rs-1000-crore-via-NCDs

In an exchange filing, M&M today said that it has received an approval from its loan & investment committee for the issuance and offer of 6.78 per cent, 10,000 rated, listed, unsecured, redeemable, NCDs of Rs 10 lakh each, aggregating Rs 1,000 crore for cash, at par, on private placement basis.

The company added that the NCDs are proposed to be listed on wholesale debt market (WDM) segment of BSE. Nevertheless, this is the second bond issue by M&M in a week’s time.

At the time of market closing on Friday, the stock of Mahindra & Mahindra Ltd was trading at Rs 334.25, down by 3.83 per cent against its previous close of Rs 347.55. Its 52-week high is Rs 682.35 while, its 52-week low is Rs 245.80 on BSE.