ALSO READMahindra Finance seeks shareholders nod to raise Rs 29,000 cr via NCDs Budget 2017: What may be in store for Mahindra & Mahindra Finance stock Mahindra & Mahindra sales down 10% at 39,303 units in January Mahindra & Mahindra sales decline 2.92% to 42,714 units in February Mahindra Electric sees 3-fold jump in e-vehicle sales, partners Zoomcar
Mahindra and Mahindra Financial Services Ltd (Mahindra Finance) plans to raise Rs 2,000 crore through issuance of debt securities to fund future lending and settle current liabilities. The company will float non-convertible debentures (NCDs) to raise the money, which will be open to subscription on July 10-28. NCDs with face value of Rs 1,000 each have a base issue size of Rs 250 crore with an option to retain subscription of up to Rs 1,750 crore. This is the first tranche of the issue and the funds to be raised will be used for onward lending, financing, refinancing the existing indebtedness and using it as long- term working capital and general corporate purposes. The NCDs will be offered in three different series, the company said in a regulatory filing. "The NCDs offered through this tranche one prospectus are proposed to be listed on the BSE," Mahindra Finance said. The debt instruments are rated AAA with a stable outlook by India Ratings and Brickwork Ratings. "The rating of NCDs indicates that the instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk," it added. Mahindra Finance, part of the Mahindra group, is into non-banking financial services focused on catering to the rural and semi-urban sector.
It provides financing for new and pre-owned auto and utility vehicles, tractors, cars, and commercial vehicles. Its asset under management as on March 31, 2017, stood at Rs 54,000 crore. The stock traded 1.34 per cent higher at Rs 356.75 on the BSE.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)