The company plans to issue up to 1,00,000 NCDs with a face value of ₹1,00,000 each, aggregating up to ₹1,000 crore, including a base issue of ₹500 crore with a green shoe option of ₹500 crore. The issuance will be carried out within the company’s overall borrowing limits approved by shareholders and the Board.
The debentures will be listed on the wholesale debt market segment of BSE Limited. The deemed date of allotment is June 18, 2026, while maturity is scheduled for June 18, 2029, giving a tenure of 3 years (1,096 days).
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The instruments carry a fixed coupon of 7.90% per annum. Coupon payments are scheduled annually on June 18 each year, with the first coupon due on June 18, 2027, followed by payments in 2028 and 2029. Principal repayment will be made on June 18, 2029.
The NCDs will be secured by an exclusive charge on present and future receivables under loan contracts, hire purchase, lease, owned assets and book debts, covering 100% of outstanding debentures. The security will be created on assets free from encumbrances, in accordance with applicable law.
In case of delay in payment beyond three months from the due date, the company will pay additional interest of 2% per annum over the coupon for the default period. No special rights or privileges are attached to the instruments. No cancellation or termination of the issuance has been reported.
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Mahindra & Mahindra Financial Services reported a 55% year-on-year increase in net profit for the fourth quarter at ₹873 crore, compared with ₹563 crore in the same period last year.
Net interest income (NII) for the quarter rose 24.8% to ₹2,709.3 crore from ₹2,171.2 crore a year ago. Assets under management (AUM) increased 12% year-on-year, while disbursements rose 11% during the quarter. Net interest margin (NIM) expanded about 101 basis points year-on-year to 7.5%, and credit cost stood at 1.5% in Q4F26 versus 1.4% in Q4F25, including overlays.
For the full year, profit after tax grew 19% year-on-year after accounting for labour code impact and management overlays. Annual disbursements rose 6% year-on-year, while NIMs expanded, supported by higher fee income and lower cost of funds.
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Shares of Mahindra & Mahindra Financial Services Ltd ended at ₹297.45, up by ₹6.20, or 2.13%, on the BSE.
