Mahindra & Mahindra, India's top utility vehicle maker, has informed that the company’s board at its meeting has approved raising additional resources through issue of 93,95,974, (9.25% per annum) unsecured fully and compulsorily convertible debentures (FCDs) of the face value of Rs 745 each to Golboot Holdings Ltd, controlled by Goldman Sachs.

The company plans to raise Rs 700 crore through the issue. The company will utilize the amount raised through the preferential offer for its auto and tractor businesses.

The debentures, to be converted into equity shares within 18 months of allotment, are priced at 745 rupees each.

The company said the issue price is at a premium of 7.91 per cent to the closing price of Rs 690.35 traded on the BSE on May 2. After the issue, Golboot Holdings Ltd would own 3.68% of the post issue paid up share capital of the company.

Kotak Mahindra Capital Company Limited was the exclusive financial advisor for the transaction.