As we already know Ssangyong Motor Co. (SMC) is a part of the USD 15.9 billion Mahindra Group which henceforth had been acquired by paying a huge sum of money to the Koreans, now confirmed, as had received 80 billion Korean won (about Rs 400 crore) from the major shareholder (Mahindra) against the new shares offered in the organization. “The 80 billion won paid-in capital for stock has been received, and the paid-in capital increase has been successfully completed,” approved SMC CEO Lee Yoo-il.
Divulging more of the details, this fund is slated to be used in the development of engines and CUV which is in tremendous need for Indian shores, and is in the pipeline to be rolled out by 2015. Though, some of them will be used for paying off the debts as well, and also increasing the overall cash liquidity for enhancing corporate front of the firm. By putting in so much of the bucks in SMC, Mahindra had projected its belief and trustworthiness towards the moniker and had also raised their credibility in Indian market. Apart from these 80 billion Korean won, Indian automaker had also agreed to roll over the corporate bond worth 94.5 billion Korean won which is scheduled to mature in 2014, by another year. Well, the blue prints for this future oriented inflow claims, Korean carmaker to utilize this amount in outsourcing, sales etc.
Already pumped in 522.5 billion won in 2011, Mahindra had received about 70% (69.63% if said to be precise) stake in Ssangyong Motor Co. that now is extended to the mark of 72.85% with those additional doses of heavy bucks, whereas the paid up capital of SMC is also notched up by 11.9%.
