Mahindra & Mahindra Financial Services Approves Issuance of Secured Non-convertible Debentures
Mahindra & Mahindra Financial Services Ltd announced that its Committee of Directors, authorized by the Board of Directors, has approved the offer and issuance of Secured, Rated, Listed, Redeemable Non-convertible Debentures. This issuance will be conducted on a private placement basis, operating within the overall borrowing limits approved by the company's shareholders and the Board.The Committee of Directors meeting that approved the issuance was held on Thursday, April 23, 2026.
The details regarding the proposed debt securities issuance are outlined below:
| Feature | Detail |
|---|---|
| Security Type | Secured, Rated, Listed, Redeemable Non-convertible Debentures |
| Issuance Mechanism | Private Placement |
| Total Securities Proposed | Upto 100,000 Non-convertible Debentures (Face value at Rs. 1,00,000/- per debenture) |
| Maximum Issue Size | Upto Rs. 1000 Crore (Base issue Rs. 500 Crores with Green shoe of additional Rs. 500 crores) |
| Listing Status | Yes, Wholesale Debt Market Segment of BSE Limited |
| Allotment Date | April 28, 2026 |
| Maturity Date | March 28, 2029 |
The debentures carry a Fixed Coupon rate of 7.71% per annum (p.a.).
The security for the debentures shall be an exclusive charge in favor of the Debenture Trustee. This charge applies to the present and/or future receivables arising under Loan contracts/Hire Purchase/Lease, owned Assets, and Book debts, to the extent of 100% of the Debenture outstanding.
The payment schedule for the interest and principal includes three coupon periods and the final principal repayment:
| Payment Event | Date | Coupon Rate | Amount Per Debenture (Rs.) |
|---|---|---|---|
| 1st Coupon | Sunday, March 28, 2027 | Fixed Coupon: 7.71% p.a. | 7055.18 |
| 2nd Coupon | Tuesday, March 28, 2028 | Fixed Coupon: 7.71% p.a. | 7710.00 |
| 3rd Coupon | Wednesday, March 28, 2029 | Fixed Coupon: 7.71% p.a. | 7710.00 |
| Principal Redemption | Wednesday, March 28, 2029 | N/A | 1,00,000.00 |
In the event of a default in payment of Coupon and/or principal redemption on the due dates, additional interest at 2% p.a. over the Coupon will be payable by the Company for the defaulting period.
The debentures are scheduled for redemption on March 28, 2029, with a redemption amount of Rs. 1,00,000/- per debenture.
Stock Price Movement
As of 14:06, shares of Mahindra & Mahindra Financial Services Ltd are ticking down to ₹297.50, marking a drop of 0.90%. The equity moved throughout the day, fluctuating within a range from ₹295.05 to a high of ₹300.10.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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