15 Jun, 2008, 1428 hrs IST, PTI
NEW DELHI: American fund house major Goldman Sachs will take a minority stake in the homegrown auto major Mahindra & Mahindra by investing Rs 700 crore through its Cybrentity Goldboot Holdings based in Cyprus.
The Board of Mahindra and Mahindra has given a go-ahead to the proposal under which Goldman Sachs controlled entity would invest about Rs 700 crore by subscribing unsecured and compulsorily convertible debentures.
The foreign firm will get 3.68 per cent stake in the M&M by converting its debentures into equal number of equity shares over a period of 18 months.
The investment by Goldboot has been approved by the Foreign Investment Promotion Board.
Goldboot has proposed to get 93.95 lakh unsecured fully and compulsorily convertible debentures (FCDs) of face value of Rs 745 each aggregating Rs 700 crore from M&M, which could be later converted into shares. M&M submitted information to BSE in this regard last week.
The Board of Mahindra and Mahindra has given a go-ahead to the proposal under which Goldman Sachs controlled entity would invest about Rs 700 crore by subscribing unsecured and compulsorily convertible debentures.
The foreign firm will get 3.68 per cent stake in the M&M by converting its debentures into equal number of equity shares over a period of 18 months.
The investment by Goldboot has been approved by the Foreign Investment Promotion Board.
Goldboot has proposed to get 93.95 lakh unsecured fully and compulsorily convertible debentures (FCDs) of face value of Rs 745 each aggregating Rs 700 crore from M&M, which could be later converted into shares. M&M submitted information to BSE in this regard last week.
As per the agreement, for which M&M has got government approval, it would offer 9.25 per cent per annum interest on funds to the Goldman Sachsby issuing over till it is issued equity share at the time of final settlement.
For the quarter ended March 31, Foreign Institutional Investors held 25.49 per cent stake in the company, which included HSBC Global Investment Fund Mauritius Ltd and JP Morgan Asset Management among others.
Goldman Sachs has investments in a host of listed entities including Sesa Goa, Reliance Capital, Jet Airways, Indiabulls Real Estate among others.
For the financial year ended March 31, M&M registered a 5 per cent growth at Rs 1,571.12 crore, as against Rs 1,497.15 crore in the year ago period, while the turnover also rose to Rs 24,445.29 crore in the year-ago period.
The homegrown auto major plans to utilise the issue proceeds to boost its auto and tractor business.
For the quarter ended March 31, Foreign Institutional Investors held 25.49 per cent stake in the company, which included HSBC Global Investment Fund Mauritius Ltd and JP Morgan Asset Management among others.
Goldman Sachs has investments in a host of listed entities including Sesa Goa, Reliance Capital, Jet Airways, Indiabulls Real Estate among others.
For the financial year ended March 31, M&M registered a 5 per cent growth at Rs 1,571.12 crore, as against Rs 1,497.15 crore in the year ago period, while the turnover also rose to Rs 24,445.29 crore in the year-ago period.
The homegrown auto major plans to utilise the issue proceeds to boost its auto and tractor business.
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