by Sachin Murdeshwar

Mumbai : 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) holders is 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 forCategory III (HNI) and Category IV (Retail Individual) holders is 9.05%, 9.15%, 9.30% and 9.50% p.a., respectively, payable annually.

 

Series	I	II	III	IV
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 I Issue 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.