Mahindra & Mahindra Financial Services said that its board has approved the allotment of 2,167 zero coupon secured redeemable non-convertible debentures (NCDs).
The NCDs will bear a face value of Rs 10 lakh each, aggregating to Rs 216.70 crore and will be issued on a private placement basis. The debt securities will be issued at a discount of Rs 1,05,259 per debenture.
The NCDs will be redeemed at par at Rs 10 lakh per debenture at the end of 1 year and 215 days from the date of allotment.
The debentures shall be secured by way of exclusive charge in favour of present and/or future receivables under loan contracts/hire purchase/lease, owned assets and book debts to the extent of 100% of debenture outstanding.
In case of default in payment of coupon and/or principal redemption on the due dates, additional interest at 2% p.a. over the coupon will be payable by the company for the defaulting period.
Mahindra & Mahindra Financial Services (Mahindra Finance) is a non-banking financial company (NBFC). Mahindra Finance ranks among the larger NBFCs in India with gross loan assets of Rs 64,961 crore as on 31 March 2022. The company finances consumer purchases of UVs, LCVs, tractors, cars, and other assets.
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The company's net profit surged to Rs 601 crore in Q4 FY22 from Rs 150 crore in Q4 FY21. Total income declined 6.5% to Rs 2,466.36 crore in Q4 FY22 from Rs 2,637.51 crore in Q4 FY21.
The scrip fell 3.77% to currently trade at Rs 195 on the BSE.
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