M&M board rejects plan to pump in fresh equity in SsangYong Motor

Mahindra & Mahindra’s (M&M’s) board of directors has turned down a proposal to pump in fresh equity of $406 million in its ailing South Korean subsidiary SsangYong Motor Co (SYMC), Mahindra said in a statement on Friday.
 

“The magnitude of the unfortunate and unforeseen crisis created by Covid-19 has compelled us to take the difficult decision,” it said. Now, SYMC’s fate hangs in balance as it will need to raise funds from other investors, failing which it may be pushed to bankruptcy, said analysts.
 

A steep contraction in export volumes, and sudden changes in buyer preference for gasoline vehicles in