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M&M allots NCDs aggregating 500 crore

To shore up liquidity, the company had raised  ₹1,000 crore by issuing commercial papers and another  ₹2,000 crore via NCDs during April. (Bloomberg )Premium
To shore up liquidity, the company had raised 1,000 crore by issuing commercial papers and another 2,000 crore via NCDs during April. (Bloomberg )

  • M&M estimates that the quantum of sales lost due to the pandemic-induced lockdown would be around 87,000 vehicles and 30,000 tractors for the quarter ending June 2020
  • The company, in a regulatory filing, said it has allotted 5,000 NCDs of 10 lakh each for cash at par at 6.19% rate of interest

MUMBAI : Vehicle and tractor manufacturer Mahindra and Mahindra Ltd (M&M) on Monday said that it has allotted rated, listed, unsecured, redeemable non-convertible debentures or NCDs worth 500 crore, on a private placement basis.

The company, in a regulatory filing, said it has allotted 5,000 NCDs of 10 lakh each for cash at par at 6.19% rate of interest. The NCDs are proposed to be listed on the wholesale debt market (WDM) segment of BSE Ltd.

Earlier on June 5, the company had said that it’s loans and investment committee had approved the issuance and offer of 6.19% 5000 NCDs aggregating 500 crore for cash at par, on private placement basis.

To shore up liquidity, the company had raised 1,000 crore by issuing commercial papers and another 2,000 crore via NCDs during April.

Last week, disclosing the impact of the pandemic on its business, M&M had said that in the short term, the company’s cash position is good with ample liquidity, having enough unused credit lines.

“The Company does not foresee any issues relating to servicing its debts or financing arrangements. Despite the near-term strain on operations and cash accruals, the company, due to its strong liquidity position expects to service its debt obligations in a timely manner," M&M said in a disclosure on June 3.

M&M estimates that the quantum of sales lost due to the pandemic-induced lockdown would be around 87,000 vehicles and 30,000 tractors for the quarter ending June 2020. It said that it lost sales of around 23,400 vehicles and 14,700 tractors in March alone due to the lockdown that was imposed from March 25 to contain the rapidly spreading coronavirus.

As a result, it said profitability of the company for the quarter and the financial year ended March 31, 2020 will be impacted. M&M is expected to announce the March quarter results on June 12.

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