Corporate | M&M may borrow overseas for upgrades

Corporate | M&M may borrow overseas for upgrades

Mumbai: Mahindra and Mahindra Ltd (M&M) may borrow overseas for the first time in four years to finance upgrades to its product line and manufacturing facilities.

Pricing has eased off for good credits in recent months, Uday Phadke, M&M’s president for finance, legal and financial services, said. M&M will spend around Rs5,500 crore in the next three years to modernize plants and may use debt finance to expand a factory in Chakan, east of Mumbai, Phadke said. The company can apply comfortable leverage to a Rs2,000 crore cash surplus earmarked for capital expenditure, he said, adding that there’s no immediate plan to borrow.


Tata Motors arm to raise Rs300 cr through NCDs

Mumbai: Tata Motors Finance Ltd, the vehicle financing arm of Tata Motors Ltd, on Thursday said it has issued non-convertible debentures (NCDs) to raise Rs300 crore. Tata Motors’ spokesman Debasis Ray said the NCDs, issued on Wednesday, have an interest of 10.75% and a tenure of 10 years. The issue is expected to close on 5 March.

— Shally Seth


Bombay Dyeing in talks to sell property to Axis

Mumbai: Bombay Dyeing and Manufacturing Co. plans to sell its 400,000 sq. ft commercial property in Mumbai to Axis Bank Ltd. “We are in active discussions with only Axis Bank at the moment and we hope it will be finalized soon," Bombay Dyeing’s chief financial officer Durgesh Mehta said.

The value of the property in Worli, Mumbai, is estimated at Rs640 crore said Prem Khurana, an analyst at Batlivala and Karani Securities Pvt. Ltd.

— Bloomberg