Home/ Market / Stock-market-news/  Mahindra and Mahindra Financial Services to raise Rs1,000 crore via NCDs

Bengaluru: Mahindra and Mahindra Financial Services Ltd, a non-banking financial company, on Tuesday said it will raise debt capital of 1,000 crore with a public issue of non-convertible debentures (NCDs).

It is first such issue from the firm, and will be open for subscription from 25 May to 10 June, company officials said. They said the NCDs proposed to be issued under this Tranche 1 Issue have been rated ‘IND AAA’ by India Ratings and Research and ‘CARE AAA’ by Credit Analysis and Research Ltd. The NCDs are proposed to be listed on BSE within 12 working days from the issue closure date.

Mahindra Finance said the funds raised through this Tranche 1 Issue will be used for onward lending, financing, refinancing the existing indebtedness of the company, long-term and working capital and general corporate purposes.

“It will be utilized mainly for our ongoing disbursement, and this is the long term money. Since we are in commercial vehicle and construction equipment which requires long term money, mainly it will be used in such kind of SME, commercial vehicle requirements and construction equipment financing," Mahindra finance executive director and chief financial officer V Ravi told reporters here. “Going forward if the issue is successful and if there is demand we may come up with more such offerings in future," he added. The NCDs, bearing a fixed rate of interest, are being offered under nine different series interest rate which will be ranged between 8.60% and 9%.

The company said ICICI Securities Ltd, AK Capital Services Ltd, Edelweiss Financial Services Ltd, JM Financial Institutional Securities Ltd, SBI Capital Markets Ltd, Trust Investment Advisors Pvt. Ltd and Yes Securities (India) Ltd are the lead managers to the issue.

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Updated: 24 May 2016, 05:12 PM IST
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