Mahindra & Mahindra Financial Services Ltd (MMFSL) launched Public Issue of unsecured mmfsl logo 1subordinated redeemable non-convertible Debentures of 250 crores with an option to retain over subscription upto 1,750 crores aggregating to Rs. 2000 Crores,  Issue open from 10 July 2017 and issue close on 28 July2017.

Before investment in this NCD check what  type of risk involved in Unsecured Subordinated debenture.

Subordinated debt has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy and rank below: the liquidator, govt. tax authorities and senior debt holder in the hierarchy of creditor. Debt instruments with the lowest seniority are known as subordinated debt instruments. (Meaning of Subordinated Debt) Refer Draft Prospect  

Product Note

Mahindra & Mahindra Financial Services Ltd NCD Issue Highlights

IssuerMahindra & Mahindra Financial Services
Type of InstrumentUnsecured Redeemable, NCD
Issue Open10 July 2017
Issue Close28 July 2017 (with option of early closure or extension)
Issue Size250 Cr. with an option to retain oversubscription of 2000 Cr.
Face ValueRs. 1,000
Min. Application Size10 Bonds (Rs.10000) & multiply of 1 NCD thereafter (across all series NCD)
Interest Annually
Mode of AllotmentD'mat as well as Physical Form
Rating BWR AAA & "IND AAA" by IRRPL
ListingBSE
Application Money Interest (refunded)5.00%
Allotment Money Interest7.50%
NRI Application not accepted

Specific Term of Issue –  

OptionsIIIIII
Tenor7 Years10 Years15 Years
Base Coupon - Cat I & II7.75%7.90%7.95%
Base Coupon Cat III (Retail)7.85%8.00%8.05%
Interest PaymentAnnualAnnualAnnual
SecurityUnSecuredUnSecuredUnSecured
Face Value100010001000
 

  Cheque Details :

Cheque / DD should be drawn in favour of  “MMFSL NCD II Public Issue – Escrow Account   “ 

 

 About Company

Mahindra & Mahindra Financial Services is one of leading non-banking finance companies (NBFC) with customer primarily rural and semi urban market. Company is part of Mahindra Group, which is one of the largest business conglomerates in India. MMFSL is engaged in providing financing for new and pre-owned auto and utility vehicles, tractors, cars and commercial vehicles.  MMFSL also provide housing finance, personal loans, financing to small and medium enterprises, insurance broking and mutual fund distribution services. In addition company also provide wholesale inventory financing to dealers and retail finance to customers in the United States for purchase of Mahindra Group product through Mahindra Finance USA LLC, the joint venture with a subsidiary of the Rabobank group.

For Investment & any query , Kindly Write to us at

                       rajendra@puneinvest.com or

                          Call Rajendra 7719917444