Mahindra & Mahindra Financial Services Ltd has approved a proposal to raise up to ₹3,000 crore through non-convertible debentures (NCDs) on a private placement basis, according to a regulatory filing dated May 14, 2026. The approval was granted by the company’s Debenture Issuance Committee.
The proposed fundraising includes a base issue size of ₹2,000 crore and a greenshoe option of ₹1,000 crore. The company plans to issue up to 3 lakh secured, rated, listed and redeemable NCDs, each carrying a face value of ₹1 lakh.
The debentures will have a tenure of 1,095 days, or 2 years and 364 days, from the deemed date of allotment.
The allotment date has been fixed as May 19, 2026, while the maturity date is scheduled for May 18, 2029. The securities will be listed on the Wholesale Debt Market segment of BSE.
The filing stated that the NCDs will carry a floating interest rate linked to the 3-month Treasury Bill yield, along with a spread of 2.10% per annum. Interest payments will be made annually, with the coupon reset every quarter.
Illustrative cash flow details shared by the company show coupon payouts of ₹7,380 per debenture in May 2027 and May 2028. The final coupon payment in May 2029 has been indicated at ₹7,359.78 per debenture.
The company clarified that the final payout may vary depending on the reset mechanism linked to the floating rate structure.
According to the disclosure, the debentures will be secured through an exclusive charge on receivables under loan contracts, lease and hire purchase assets, as well as book debts covering the outstanding debenture value.
The redemption amount has been fixed at ₹1 lakh per debenture, payable on May 18, 2029. The filing also stated that an additional interest of 2% per annum would apply in the event of delays in coupon or principal payments beyond the due date.
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As of May 15, 2026, 12:25 pm, Mahindra & Mahindra Ltd share price was trading at ₹3,149.00, down 0.78% from the previous closing price.
The proposed NCD issue will be carried out through private placement and is scheduled to mature in May 2029. The debentures will carry a floating interest rate linked to Treasury Bill yields.
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Published on: May 15, 2026, 12:59 PM IST
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