Mahindra Finance to Raise ₹100 Crore via Secured NCDs on Private Placement

Mahindra & Mahindra Financial Services Ltd has approved the issuance of secured, redeemable, non-convertible debentures (NCDs) on a private placement basis. The decision was taken by a Committee of Directors on July 10, 2025, and falls within the company’s shareholder-approved borrowing limits.

The company plans to issue up to 10,000 secured NCDs, each with a face value of ₹1 lakh. The total size of the issue is capped at ₹100 crore. These debentures will be listed on the Wholesale Debt Market segment of BSE.

Allotment and Maturity Dates

The deemed date of allotment is July 15, 2025. The tenure of the NCDs is 1 year and 349 days. Maturity is scheduled for June 29, 2027. The debentures will be redeemed at face value on the maturity date.

A fixed coupon of 7.05% per annum is attached to the issuance. Interest payments are scheduled for June 29, 2026 (₹6,740.96 per NCD) and June 29, 2027 (₹7,050.00 per NCD). The principal repayment of ₹1,00,000 per NCD will be made on the final maturity date.

Security and Charge Creation

The debentures will be secured by an exclusive charge on receivables, lease and hire purchase assets, and book debts, free of encumbrance. The company will create the security in favour of the trustee as per the required legal timeline.

In case of delay or default in interest or principal repayment, the company will pay an additional interest of 2% per annum for the period of default.

There are no special rights, delays, or cancellations associated with this issue. No adverse letters or comments have been received on the matter. Full details are available on the company’s regulatory filings page.

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M&M Financial Services Share Price Performance 

On July 11, 2025, at 10:19 AM, Mahindra and Mahindra Financial Services share price was trading at ₹265.05, a 0.95% decrease.

Conclusion

The ₹100 crore NCD issue is structured within regulatory norms and will be executed through private placement with secured backing.

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