Mumbai, April 20. (PTI): Utility vehicle manufacturer Mahindra and Mahindra plans to raise up to Rs 1,350 crore for launching new products, capacity expansion and acquisitions.

M&M would raise up to Rs 1,260 crore ($300 million) from international markets through the issuance of equity shares or Foreign Currency Convertible Bonds (FCCBs). It would also raise Rs 90 crore through the issue of shares or other securities to Qualified Institutional Buyers (QIP).

The Board of Directors at its meeting today approved to raise the amount subject to requisite approvals, the company informed the Bombay Stock Exchange.

"The total amount to be raised by the proposed offer of securities and QIP basis would not exceed Rs 1,350 crore," M&M said.

Funds would be used for research and development, new products, balancing equipment, capacity expansion, absorption of new technology, investments, Joint Ventures and acquisitions.

The company would seek shareholders approval by a postal ballot, the results of which would be declared by June 4. Earlier on April 12, the company said it would consider raising additional long-term resources for its present and future needs.

In March this year, M&M, along with its subsidiary Mahindra Holdings and Finance had won the bid to acquire around 43.5 per cent stake in Punjab Tractors Ltd (PTL) for Rs 360 a share in an all-cash deal.

The company has made an open offer to acquire an additional 20 per cent in PTL a deal, which would cost around Rs 1,391 crore.