News Digest

02 December 2017
M&M Financial to raise Rs.2,000 cr via NCD iss

Mahindra and Mahindra Financial Services plans to raise Rs.2,000 crore through issue of unsecured redeemable non-convertible debentures (NCDs) via a public issue to fund its rural lending business. The issue opens on July 10 and closes on July 28. However, the issue, with a base size of Rs. 250 crore, can be closed earlier than July 28, depending on the success of the subscription, said a top Mahindra Finance official. This is the second such NCD issue by the company in the last two years. “We have doubled our issue size and the confidence has come from the positive sentiment in the rural economy auguring well,” said the company's Chief Financial Officer V Ravi. He further added that the issue will be split between four categories of investors — qualified institutional buyers (QIBs), corporates, high net worth individuals and retail individuals — and will be offered in three tenures – seven, 10 and 15 years.

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