Mahindra & Mahindra Ltd has raised $100 million through the issuance of foreign currency convertible bonds with participation from European and Asian investors.
The issue, launched on Friday, was oversubscribed and was priced at zero coupon for a five-year tenure with a redemption price of 117.49 per cent to yield 3.25 per cent till maturity, M&M said in a release in Mumbai.
The conversion price was fixed at Rs 647.05, which is at a 37 per cent premium to yesterday's closing share price of Rs 472.30.
The issuer has a call option starting after two years till maturity with a hurdle rate of 120 per cent over the conversion price.
Bharat Doshi, executive director, finance and corporate affairs, M&M, said: "The successful completion of the issue indicates the continued interest of global investors in the country."
The proceeds are intended to be used for product development, modernisation and expansion of the existing manufacturing facilities and expansion by internal growth and overseas acquisitions.
ABN Amro Rothschild and Kotak Investment Banking were the joint book runners for the transaction.