Approval to issue secured NCDs of up to Rs. 2,000 crore on private placement at 7.95% coupon
The Debenture Issuance Committee approved issuing Secured, Rated, Listed, Redeemable Non-convertible Debentures on a private placement basis.
By ScoutQuest · · 2 min read
- Issue Size
- up to Rs. 2,000 crore (base Rs. 1000 Crore + green shoe Rs. 1000 crore)
- Number of NCDs
- Up to 2,00,000 NCDs of face value Rs. 1,00,000 each
- Fixed Coupon Rate
- 7.95% p.a.
- Tenure
- 1095 Days (2 years & 364 days)
- Maturity Date
- 28th September, 2029
What happened
The Debenture Issuance Committee, authorised by the Board, approved the offer and issuance of Secured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) on a private placement basis, within the borrowing limits already approved by shareholders. The event occurred on 24th September 2026 at 4:00 p.m. (IST).
Issue details (Series AE2026, fresh issuance)
- Up to 2,00,000 NCDs of face value Rs. 1,00,000/- per debenture
- Issue size up to Rs. 2,000 crore — base issue Rs. 1000 Crore with a green shoe of an additional Rs. 1000 crore
- Fixed coupon: 7.95% p.a.
- Tenure: 1095 Days (2 years & 364 days) from the deemed date of allotment
- Deemed date of allotment: 29th September, 2026; maturity: 28th September, 2029
- To be listed on the Wholesale Debt Market Segment of BSE Limited
Cash flows per debenture
- 1st Coupon on 29 September, 2027: Rs. 7,950.00 (365 days)
- 2nd Coupon on 29 September, 2028: Rs. 7,950.00 (366 days)
- 3rd Coupon on 28 September, 2029: Rs. 7,928.22 (364 days)
- Principal on 28 September, 2029: Rs. 1,00,000
Security
The debentures will be secured by an exclusive charge in favour of the Debenture Trustee on present and/or future receivables under Loan contracts/Hire Purchase/Lease, owned assets and book debts, to the extent of 1.1x of debentures outstanding. The security is to be created on assets free from any encumbrances, within the timeframe prescribed by law.
Default clause
If coupon or principal is not paid on the due date, additional interest at 2% p.a. over the coupon is payable for the defaulting period.
How to read this
For a lending business, raising funds through NCDs is routine borrowing used to finance its loan book. The private placement route means the debentures are offered to select investors rather than the public. The key variables for investors are the size raised, the 7.95% cost of these funds and the near three-year maturity profile.
Also from Mahindra & Mahindra Financial Services
Mahindra & Mahindra Financial shares fell nearly 7% after reporting results
22 Oct 2026
Mahindra Finance uploads audio recording of Q2/H1 FY2026 earnings conference call held 21 Oct 2026
21 Oct 2026
Mahindra & Mahindra Financial Services Ltd press release, Q2 FY27
21 Oct 2026
More numbers
- Face value per debentureRs. 1,00,000/- per debenture
- Number of NCDs proposedUp to 2,00,000 Non-Convertible Debentures
- Total issue sizeUp to Rs. 2,000 crore
- Base issueBase issue Rs. 1000 Crore
- Green shoe optionGreen shoe of additional Rs. 1000 crore
- Coupon rate7.95% p.a.
- Tenure2 years & 364 days (1095 Days)
- 1st coupon amount per debenture7,950.00
- 2nd coupon amount per debenture7,950.00
- 3rd coupon amount per debenture7,928.22
- Security cover1.1x of Debentures outstanding
- Additional interest on default2% p.a. over the Coupon
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.