M&M Financial Services to raise Rs 1,000 cr via NCDs

Mahindra & Mahindra Financial Services Ltd, a non-banking finance company, today said it will raise debt capital of Rs 1,000 crore with a public issue of non-convertible debentures (NCDs).
It is first such issue from the firm, and will be open for subscription from May 25 to June 10, company officials said.
They said the NCDs proposed to be issued under this Tranche 1 Issue have been rated 'IND AAA' by India Ratings and Research and 'CARE AAA' by Credit Analysis & Research Ltd. The NCDs are proposed to be listed on BSE within 12 working days from the issue closure date.

Mahindra Finance said the funds raised through this Tranche 1 Issue will be used for onward lending, financing, refinancing the existing indebtedness of the company, long-term and working capital and general corporate purposes.
"It will be utilised mainly for our ongoing disbursement, and this is the long term money.
"Since we are in commercial vehicle and construction equipment which requires long term money, mainly it will be used in such kind of SME, commercial vehicle requirements and construction equipment financing," Mahindra Finance Executive Director and CFO V Ravi told reporters here.

"Going forward if the issue is successful and if there is demand we may come up with more such offerings in future," he added.

The NCDs, bearing a fixed rate of interest, are being offered under nine different series interest rate which will be ranged between 8.60 per cent and 9 per cent.
The company said ICICI Securities Ltd, A K Capital Services Limited, Edelweiss Financial Services Limited, JM Financial Institutional Securities Limited, SBI Capital Markets Limited, Trust Investment Advisors Private Limited and Yes Securities (India) limited are the lead managers to the issue.