Mahindra Finance Greenlights Rs 1 Billion NCD Issue to Bolster Lending Capacity

Image Source : Zee Business

Mahindra & Mahindra Financial Services Ltd has approved the issuance of NonConvertible Debentures (NCDs) worth up to Rs 1 billion, reinforcing its strategy to diversify funding sources and support rural credit expansion.

Issue Overview

The NCDs will be issued in one or more tranches, subject to market conditions and regulatory approvals.
Funds raised will be used for onward lending, refinancing existing debt, and meeting working capital needs.

Strategic Context

Mahindra Finance, a leading NBFC, serves over 9 million customers across rural and semiurban India, focusing on vehicle, SME, and housing finance.
The company holds a AAA rating from CARE and India Ratings, reflecting strong financial discipline and asset quality.

Market Implications

The move aligns with the firm’s goal to deepen its retail lending footprint while maintaining costeffective capital access.
Investors view the NCD issuance as a stable fixedincome opportunity amid volatile equity markets.

Sources: HDFC Securities, Mahindra Finance Corporate Filings, India Ratings, BondsIndia, Economic Times