Mahindra & Mahindra Financial Services Allots Non-Convertible Debentures Worth Rs. 2,200 Crore
Mahindra & Mahindra Financial Services Limited announced the successful allotment of Non-convertible Debentures (NCDs) on a private placement basis, aggregating to Rs. 2,200,00,00,000/- (Rupees Two Thousand Two Hundred Crore only). The allotment occurred on May 19, 2026, following a successful bidding process on the BSE Bond-EBP Platform.The company approved the allotment of 2,20,000 Secured, Rated, Floating, Listed Redeemable Non-convertible Debentures. These debentures have a face value of Rs. 1,00,000 per debenture.
The total subscription amount of Rs. 2,200 Crore represents a combined base issue size of Rs. 2,000 Crore and a Green Shoe subscription of Rs. 200 Crore.
The NCDs are issued at a floating coupon rate determined by (3MTBILL+2.10% Spread) per annum. This coupon is payable annually and is subject to a quarterly reset mechanism. These securities are proposed to be listed on the Wholesale Debt Market Segment of the BSE Limited.
Key Transaction Details
The key timelines and structure for the debt issuance are as follows:| Detail | Specification |
|---|---|
| Date of Allotment | May 19, 2026 |
| Total Allotted Amount | Rs. 2,200,00,00,000/- |
| Face Value per Debenture | Rs. 1,00,000 |
| Maturity Date | May 18, 2029 |
| Coupon Rate Basis | (3MTBILL+2.10% Spread) p.a. |
Repayment and Security Structure
The debentures shall be secured by an exclusive charge in favour of the Debenture Trustee. The security covers present and/or future receivables under Loan contracts, Hire Purchase/Lease, owned Assets, and Book debts, to the extent of 100% of the debenture outstanding. The security shall be created on assets that are free from any encumbrances.The repayment schedule, based on the initial coupon rate, is structured over three coupon periods, followed by the principal repayment.
| Schedule Event | Date | Amount per Debenture (Rs.) |
|---|---|---|
| 1st Coupon Payment | May 19, 2027 | 7,380.00 |
| 2nd Coupon Payment | May 19, 2028 | 7,380.00 |
| 3rd Coupon Payment | May 18, 2029 | 7,359.78 |
| Principal Redemption | May 18, 2029 | 1,00,000.00 |
The company noted that the illustrated cash flow is only an example based on the initial coupon rate. The actual interest rate will be determined through the reset mechanism due to the floating nature of the interest rate. In the event of a default in payment of the Coupon and/or principal redemption on the due dates, additional interest at 2% per annum over the Coupon will be payable by the company for the defaulting period.
M&MFIN Stock Price Movement
Today, Mahindra & Mahindra Financial Services Limited shares closed at ₹319.65, gaining 0.80% in post-market trading. The stock traded within an intraday range of ₹315.1 to ₹320.7 and saw significant interest, moving on a volume of 845,942 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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