M&M Financial share price jumps 4% after allotment of NCDs worth ₹500 crore

Stock market today: Shares of non-banking finance company (NBFC) Mahindra & Mahindra Financial Services (M&M Financial) witnessed a 4% increase on Thursday, February 27, after it informed that the Committee of Directors has approved the allotment of 50,000 non-convertible debentures (NCDs) to identified investors.

"We hereby inform you that, based on the successful bidding done at the BSE Bond-EBP Platform, the Committee of Directors has today approved the allotment of 50,000 Unsecured, Rated, Listed, Subordinated (Tier II), Redeemable Non-convertible Debentures (NCDs) of the face value of ₹1,00,000 per debenture, issued at par, with a coupon of 8.30% per annum for a tenor of 10 years from the date of allotment, on a private placement basis to the identified investors," the exchange filing shared by the company today stated.

The said NCDs are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited, M&M Financial further informed.

Rating action

India Ratings and Research (Ind-Ra) on February 26 affirmed Mahindra & Mahindra Financial Services' long-term issuer rating at ‘IND AAA’ with a 'Stable' outlook.

Ind-Ra as part of its rationale said that ratings continue to reflect M&M's credit strength and consider M&M Financial's diversified funding profile and the competitive cost at which it raises funds. "MMFSL has demonstrated an improvement in its profitability in 9MFY25 due to better margins and an improvement in its asset quality, as reflected in the reduced credit cost. Although there was an increase in MMFSL’s leverage due to growth in the loan book, Ind-Ra believes M&M will support MMFSL in terms of timely equity infusion as and when needed," it added.

Stock Price Trend

Shares of M&M Financial ended 3% higher at ₹279.30 apiece. The stock rose as much as 5.4% during the intra-day trade to hit the day's high of ₹285.75 apiece.

The stock has gained 5% in the last one month and 4% in three months, defying the ongoing stock market crash. However, on a longer period of six and 12 months, the scrip has lost 11% and 3%, respectively.

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