Rs 100 crore NCD issue fully subscribed

Sujoy Manna

Mumbai, April 26 : THE Rs 100 crore non convertible debenture (NCD) issue of Mahindra and Mahindra Ltd (M&M) has been fully subscribed. The company had planned to tap the market in order to meet its long term working capital requirement as well as capital expenditure.

The Rs 100 crore issue included a green shoe option of Rs 50 crore. The coupon rate for the issue has been fixed at 11.15 per cent.

The issue has a tenure of seven year with a put/call options at the end of fifth year.

JM Morgan Stanley is one of the lead arrangers for the issue with online subscription available through RiskXpress.com, which is the other lead arranger.

Sources said that the amount mobilised is to be used to meet the company’s general corporate requirement, partly for normal working capital and small capital expenditure requirement.

M&M is planning to float a 100 per cent subsidiary called Mahindra Auto Specialities for foraying into the auto accessories market.

The subsidiary would provide accessories for passenger cars in various segments at a later stage.

There is not much difference in the accessories requirement between different vehicles and as a result the subsidiary is looking to provide a one stop solution for accessories. M&M has also entered into a deal with Renault to source petrol engines for its Scorpio projects.