Mahindra and Mahindra, India's leading automobile manufacturing company, has informed that it has successfully raised Rs 700 crore through the issue of convertible debentures with a Goldman Sachs controlled entity Golboot Holdings Ltd.

The company has allotted 93,95,974, unsecured fully and compulsorily convertible debentures (FCDs) of the face value of Rs 745 each to Golboot Holdings. Each debenture would be converted into one share within 18 months of allotment.

M&M plans to utilise the amount raised through preferential offer for meeting its long-term fund requirement and towards its auto and tractor business.

With this investment, Golboot Holdings would own 3.68% of the post issue paid-up equity share capital of the company.

The stock of the company closed today at Rs 530 on BSE, down 2% compared with previous close of Rs 540. It touched an intraday high and low of Rs 550 and Rs 527 respectively.