Home / Business and Economy / M&M Financial Raises ₹1,000 Crore Via NCDs
M&M Financial Raises ₹1,000 Crore Via NCDs
15 Jun
Summary
- Company approved issuance of up to ₹1,000 crore NCDs.
- Debentures will mature in 3 years with a 7.90% annual coupon.
- Net profit increased 55% year-on-year for the fourth quarter.
Mahindra & Mahindra Financial Services, a prominent non-bank lender, has received board approval for the issuance of non-convertible debentures (NCDs) totaling up to ₹1,000 crore. This private placement will involve issuing up to 1,00,000 NCDs, each with a face value of ₹1,00,000. The debentures are secured, rated, listed, and redeemable, with a base issue of ₹500 crore and an option to issue an additional ₹500 crore.
The NCDs are scheduled for listing on the wholesale debt market segment of BSE Limited. They will mature on June 18, 2029, offering a tenure of 3 years. Investors will receive a fixed annual coupon of 7.90%, with coupon payments due on June 18 of each year from 2027 to 2029. The principal repayment is also slated for June 18, 2029.
In parallel, Mahindra & Mahindra Financial Services announced robust financial performance for the fourth quarter. The company's net profit surged by 55% year-on-year to ₹873 crore. Net interest income saw a 24.8% increase, reaching ₹2,709.3 crore. Assets under management grew by 12%, with disbursements rising 11% during the quarter.
