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Goldman invests $175 Mn for minority stake in M&M
By siliconindia
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Tuesday, 17 June 2008, 01:13 IST
New Delhi: Goldman Sachs, an American funding firm, will buy a minority stake in the Indian auto firm Mahindra & Mahindra by investing Rs 700 crore ($175 million) through its Cybrentity Goldboot Holdings based in Cyprus.
The board of M&M has agreed on the proposal under which Goldman Sachs controlled entity would invest about Rs 700 crore by subscribing unsecured and compulsorily convertible debentures.
The foreign firm will get 3.68 percent stake in the M&M by converting its debentures into equal number of equity shares over a period of 18 months.
The investment by Goldboot has been approved by the Foreign Investment Promotion Board (FIPB).
Goldboot has proposed to 93.95 lakh unsecured fully and compulsorily convertible debentures (FCDs) of face value of Rs 745 each aggregating Rs 700 crore from M&M, which could be later converted into shares. M&M submitted information to BSE in this regard last week.