Mahindra Ssangyong to increase paid in capital to secure investment fund

Ssangyong Motor which sees Mahindra Group as a major shareholder has announced that it will be increasing paid in capital by KRW 80 billion for the sole reason of raising investment funds. As per the announcement, the company will be issuing 14,545,455 shares through a third party allotment which will increase the company’s paid in capital by an 11.9%.

These new shares will be priced at KRW 5,500 per share cumulating to an amount of KRW 80 billion. Company’s financial strength is expected to rise considerably taking note of rising liquidity and lowered debt to equity ratio. Ssangyong will make use of these funds to invest in its new CUV products. Mahindra Group which will be investing in this venture has yet again proven that it’s ready to support Ssangyong so as to build brand reputation and improve sales over a global area.

CEO of Ssangyong motor said that in funds gained from the increase paid in capital the company will not only be able to capitalize on funding for new product developments such as small CUV’s but also strengthen the overall finance outlook of the company.