Shares of Mahindra Finance closed at ₹339, down 2.77% on the BSE, after the company announced an upcoming non‑convertible debenture issue. The board approved a base issue of ₹1,000 crore with a green‑shoe option for an additional ₹1,000 crore, bringing the total potential to ₹2,000 crore.
The debenture package will comprise 200,000 units at ₹1 lakh face value each. It carries a fixed coupon of 7.95% per annum, payable on 29 September 2027, 2028 and 28 September 2029, with the final coupon of ₹7,928.22 and principal repayment on maturity.
Security is granted through an exclusive charge over existing and future receivables, hire‑purchase and lease assets, and book debts, at a coverage ratio of 1.1×. In the event of a default, an additional 2% interest per annum will be levied on the overdue coupon.
The issue sits comfortably within the borrowing limits approved by shareholders and the board. Market participants now monitor how the 2‑year, 364‑day tenor will impact Mahindra Finance’s debt profile and liquidity, especially as the sector watches new funding rounds to support rural lending momentum. Future guidance will hinge on coupon schedules and the company’s ability to generate sufficient cash flow to service the debt without distorting its growth targets.