Mahindra to raise Rs 475 crore via NCDs

Tenure of the instrument will be 10 years; company does not specify purpose for which funds are being raised

Utility and tractor major Mahindra & Mahindra will raise Rs 475 crore through issuance of non-convertible debentures (NCD) on private placement basis.

"The loans and investment committee has approved the issuance and offer of 4,750 rated, listed, unsecured, redeemable, 7.57 per cent non-convertible debentures of face value of Rs 10,00,000 each at par aggregating to Rs 475 crore on private placement basis", said a statement by the Mumbai-basis company.

The tenure of the instrument will be of 10 years with a date of allotment being September 27, 2016. The company did not specify for what purpose the funds are being raised.

Shares of the company were trading 1.84 per cent down, at Rs 1383.65, at around three o'clock on the Bombay Stock Exchange.