Mahindra & Mahindra Financial Services, a leading NBFC company, is planning to raise up to Rs 3,500 crore via issue of non-convertible debentures (NCDs). The public issue of NCDs that opens for subscription on January 4, 2019 will have a base issue size of up to Rs. 500 crore. The issue will close on January 25.
The issue will come with an option to retain oversubscription up to Rs 3,000 crore, aggregating to Rs. 3500 crore. In a regulatory filing the company said that these NCDs offered via tranche I are proposed to be listed on the BSE.
Such NCDs carry a fixed rate of interest and are being provided under 4 different series :-
Of these 3 of them are secured NCDs i.e. Series I (39 months), series II (60 months) and series III (96 months) and Series IV with a maturity term of 120 months are unsecured subordinated NCDs.
For investor category I (QIB) and category II (corporate), series I, series II, series III and series IV will provide coupon rate of 9%, 9.10%, 9.20% and 9.35% per annum, respectively, payable annually.
For investor category III (HNIs) and category IV (retail investors), series I, series II, series III and series IV will provide coupon rate of 9.05%, 9.15%, 9.30% and 9.50% per annum, respectively, payable annually.