Mahindra & Mahindra to seek approval for fund raising proposals

Mahindra & Mahindra Ltd has announced that the Board of Directors of the Company at its Meeting held on April 20, 2007 interalia, has subject to receipt of the requisite approvals approved the following:

1. Raising of additional long term resources upto US $ 300 million (with a right to retain additional 15% subscription) in the International Markets through issuance of Equity Shares through Depositary Receipts and / or Foreign Currency Convertible Bonds (Securities) by way of an offering denominated in Foreign Currencies to investors outside India. The Equity Shares that may be issued on the conversion of the Securities, may be represented by Depositary Receipts and / or such other Securities; and/or

2. Issue of Shares and / or other Securities under Chapter XIII-A of the Securities and Exchange Board of India (Disclosure & Investor Protection) Guidelines, 2000 to Qualified Institutional Buyers (QIP Securities) in one or more tranches by way of placement to Qualified Institutional Buyers through a Qualified Institutional Placement, not exceeding Rs 900 crores in the aggregate at any one point of time.

The total amount to be raised by the proposed Offer of Securities and QIP Securities would not in the aggregate exceed a sum of Rs 1350 crores.

The said funds are being raised to make substantial investments in research and development, new product development, balancing equipment, capacity expansion, absorption of new technology, etc. to sustain growth and maintain leadership in all the addressable businesses of the Company. Similarly, significant investments are expected to be made for Joint Ventures, Acquisitions, etc.

3. The Company would be seeking the consent of the shareholders for the aforesaid by a Postal Ballot in accordance with section 192A of the Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001.

The Board has fixed April 27, 2007 as the cut off date for ascertaining the list of shareholders to whom Notice and Postal Ballot Form will be sent and also for reckoning the voting rights.

The results of the Postal Ballot will be declared on or before June 04, 2007.

Source : Equity Bulls

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