- NCDs of face value of Rs.1000each for an amount of Rs. 500crores (“Base Issue Size”)
- Option to retain oversubscription up to Rs. 3,000crores aggregating up to Rs.3,500crores (“Tranche I Issue”)
- Tranche I Issue offers both secured and unsecured NCDs
- The amount reserved for Secured and Unsecured NCDs is Rs. 2,500 crores and Rs. 1,000 crores respectively
- Issue opens on January 04, 2019 and closes on January 25, 2019**
Mahindra & Mahindra Financial Services Limited (“Company” or “Mahindra Finance”), one of the leading non-banking finance companies with customers primarily in the rural and semi-urban markets of India, plans to undertake a public issue of NCDs opening on January 04, 2019.
The NCDs proposed to be issued under this Tranche I Issue have been rated ‘CARE AAA (Triple A); Stable by Credit Analysis & Research Ltd. (“CARE”) and ‘IND AAA; Stable’ by India Ratings & Research Private Limited (“India Rating”) for an amount of Rs. 10,000 crores. The rating of NCDs by CARE and India Ratings indicate that instruments with this rating are considered to have highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk. The NCDs offered through this Tranche I Prospectus are proposed to be listed on the BSE Limited (“BSE”).
These NCDs, bearing a fixed rate of interest, are being offered under four different Series. Series I (39 months), Series II (60 months) and Series III (96 months) are offered as Secured NCDs while Series IV (120 months) is offered as Unsecured Subordinated NCDs.
The coupon rate on Series I, Series II, Series III and Series IV NCDs for Category I (QIB) and Category II (Corporate) holdersis 9.00%, 9.10%, 9.20% and 9.35% p.a., respectively, payable annually. The coupon rate on Series I, Series II, Series III and Series IV NCDs for Category III (HNI) and Category IV (Retail Individual) holders is 9.05%, 9.15%, 9.30% and 9.50% p.a., respectively, payable annually.
|Frequency of Interest Payment||Annual||Annual||Annual||Annual|
|Minimum Application||₹ 10,000 (10 NCDs) across all Series collectively|
|In Multiples of thereafter||₹ 1,000 (1 NCD)|
|Face Value& Issue Price of NCDs (₹/ NCD)||₹ 1,000|
|Mode of Interest Payment||Through various options available|
|Tenor||39 months||60 months||96 months||120 months|
|Coupon (%) – Category I and Category II||9.00||9.10||9.20||9.35|
|Coupon (%) – Category III and Category IV||9.05||9.15||9.30||9.50|
|Redemption Date (from Deemed Date of Allotment)||39 months||60 months||96 months||120 months|
|Nature of Indebtedness||Secured||Secured||Secured||Unsecured|
|Redemption Amount (₹/NCD)||₹ 1,000|
There are no put and call options in the proposed Issuance.
Investors have to apply only through ASBA format and NCDs shall be allotted only in dematerialized form.
The funds raised through this Tranche IIssue will be used for the purpose of onward lending, financing, refinancing the existing indebtedness, long term working capital and for general corporate purposes.
Edelweiss Financial Services Limited, A. K. Capital Services Limited, Axis Bank Limited, ICICI Securities Limited, SBI Capital Markets Limited, Trust Investment Advisors Private Limited and Yes Securities (India) Limited are the Lead Managers to the Issue. Axis Trustee Services Limited is the Debenture Trustee, while Karvy Fintech Private Limited is the Registrar to the Issue.
About Mahindra & Mahindra Financial Services Limited
Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies.Focused on the rural and semi-urban sector, the Company has an AUM of over Rs.59,000 crores as on September 30, 2018. The Company is a leading vehicle and tractor financier and also offers fixed deposits and loans to SMEs. The Company has 1,296 offices spread across 27 states and 5 union territories.
Mahindra Finance is the only Non-Banking Finance Company from India to be listed on the Dow Jones Sustainability Index in the Emerging Market Category. Mahindra Finance has been ranked 14th on the list of India’s Best Companies to work for – 2018, by Great Place to Work® Institute.
The Company’s Insurance Broking subsidiary, Mahindra Insurance Brokers Limited (MIBL), is a licensed Composite Broker providing Direct and Reinsurance broking services.
Mahindra Rural Housing Finance Limited (MRHFL) a subsidiary of Mahindra Finance provides loans for purchase, renovation, construction of houses to individuals in the rural and semi-urban areas of the country.
Mahindra Asset Management Company Private Limited (MAMCPL), a wholly-owned subsidiary of Mahindra Finance, acts as the Investment Manager of Mahindra Mutual Fund.
The Company has a JV in US, Mahindra Finance USA LLC, in partnership with De Lage Landen, a subsidiary of Rabo Bank, for financing Mahindra tractors in US.