Monday, May 5, 2008

Mahindra & Mahindra Share Informed BOD Of Company At Meeting

Mahindra & Mahindra Ltd has informed that the Board of Directors(BOD) of the Company at its Meeting held on May 03, 2008, inter alia, subject to receipt of requisite approvals has approved raising additional resources through issuance of 93,95,974, 9.25% p.a. Unsecured Fully and Compulsorily Convertible Debentures (FCD or FCDs) of the Face Value of Rs 745 each aggregating Rs 700,00,00,630 to Golboot Holdings Ltd, an entity controlled by Goldman Sachs, each FCD being convertible into one Equity Share of Rs 10 each in the Company at a price of Rs 745 per Share (including premium of Rs 735 per Share) in accordance with Chapter XIII of the Securities and Exchange Board of India (Disclosure & Investor Protection) Guidelines, 2000.

The FCDs shall be convertible into Equity Shares at anytime within 18 months from the date of allotment of FCDs at the option of the Investor, and mandatorily convertible into Equity Shares on the date falling 18 months from the date of allotment.

The issue price represents a premium of over 7.91% to the closing price of Rs 690.35 per share traded on Bombay Stock Exchange Ltd on May 02, 2008. With this investment, Golboot Holdings Ltd shall own 3.68% of the post issue paid up equity share capital of the Company.

The Company will utilise the amount raised through preferential offer towards its auto and tractor businesses. Kotak Mahindra Capital Company Ltd was the exclusive financial advisor for the above transaction.

- The Company would be seeking 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 May 03, 2008 as the cut off date for ascertaining the list of
Shareholders to whom Notice and Postal Ballot Form will be sent.

The results of the Postal Ballot will be declared on June 11, 2008.

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