Tech Mahindra, the fifth-largest software exporter, today said it is raising Rs 300 crore by issuing non-convertible debentures to repay high cost debt.
Tech Mahindra today issued redeemable non-convertible debentures (NCD) of Rs 75 crores each to various investors for tenures of 12, 18, 24 and 30 months, respectively, the company said in a statement.
The NCDs carry a coupon rate ranging from 7.25 per cent for 12 months to 8.85 per cent for 30 months. The NCDs are rated AAA with stable outlook by CARE.
The funds raised through these NCDs would be utilized to repay existing high cost debt, it said.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra, in partnership with British Telecommunications plc.
With total revenues of Rs 4,464.7 crores in the year ended March 31, 2009, Tech Mahindra serves telecom service providers, equipment manufacturers, software vendors and systems integrators.
Tech Mahindra solutions enable clients to maximize returns on IT investment by achieving fast time to market, reduced total cost of ownership and high customer satisfaction.