Mahindra & Mahindra Financial Services Limited is coming up with an NCD (non-convertible debenture) issue. Mahindra Finance NCD review will find details about the issue and evaluate it.
About the issue – Mahindra Finance NCD review finds the following details as per draft prospectus.
- Issue opens on – July 10, 2017
- Issue closes on – July 28, 2017
- NCD price – Rs 1000 per NCD
- NCD Face Value – Rs 1000 per NCD
- Issue size – Rs 250.00 crores
- Issue type – Fixed price NCDs
- Lot size – 10 NCDs and multiples thereof
- Listing Exchange – BSE
- Objects of the issue – for long term working capitals, for general corporate purposes and for financing, lending and refinancing of existing indebtedness.
Tenure – NCDs can be had for fixed tenures of 7 years, 10 years and 15 years. The NCDs will give annual interests. The rates of interests are as follows.
- For QIBs (qualified institutional buyer) and Corporates – 7.75% of interest for 7 years tenure, 7.90% of interest for 10 years tenure and 7.95% of interest for 15 years tenure NCDs.
- For HNI (high net worth individual) and Retail category – 7.85% of interest for 7 years tenure, 8.00% of interest for 10 years tenure and 8.05% of interest for 15 years tenure NCDs.
- The company may exercise call option after 10 years for NCDs of 15 years tenure.
Rating – Ratings play an important role for debentures and NCDs as investors want to be assured of credit safety and risk measures before investing in these financial instruments. Mahindra Finance NCD review finds these NCDs are given good ratings by top notch rating agencies.
- India Ratings & Research Private Limited has given ‘IND AAA’ and ‘Outlook Stable’ ratings for an amount of up to Rs 2000 crores.
- Brickwork Ratings India Private Limited has given a rating of ‘BWR AAA’and ‘Outlook Stable’.
- The ratings given by BWR and India Ratings shows that these financial instruments carry lowest credit risks and have the highest degree of safety, as far as timely servicing of financial instruments are concerned.
About the company – Mahindra & Mahindra Financial Services Limited (MMFSL) is a top NBFC (non-banking financial company) company of India promoted by the reputed corporate house Mahindra and Mahindra Limited. The company is primarily in the business of financing and refinancing of automobiles, all kinds of personal and commercial vehicles, construction equipment and SME financing.
It has presently 1182 offices across India. The parent company owns 51.20% stake. MMFSL also has ventured into personal loans, gold loans, housing finance, insurance broking, mutual funds, AMC.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.