American fund house major Goldman Sachs will take a minority stake in the homegrown auto major Mahindra & Mahindra by investing 700 crore rupees ($163 million) through its Cybrentity Goldboot Holdings based in Cyprus.
The Board of Mahindra & Mahindra has given a go-ahead to the proposal under which Goldman Sachs controlled entity would invest about 700 crore rupees by subscribing unsecured and compulsorily convertible debentures. The foreign firm will get 3.68% 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.
Goldboot has proposed to get 93.95 lakh unsecured fully and compulsorily convertible debentures (FCDs) of face value of rupees 745 each aggregating rupees 700 crore from M&M, which could be later converted into shares. M&M submitted information to BSE in this regard last week. (The Economic Times)