What are the key terms of the NCD issuance?

The NCDs are secured, rated, listed, with a fixed coupon of 7.90% per annum and a tenure of 3 years. The base issue size is ₹500 crore with a green shoe option of another ₹500 crore.

How does this issuance compare to M&M Financial's market cap?

At ₹1,000 crore maximum, the issuance represents about 2.47% of the company's market capitalization of ₹40,483 crore, which is below the mid-cap materiality threshold of 3%.

Is this NCD issue a routine activity for M&M Financial?

Yes. As a AAA-rated NBFC, the company regularly taps the debt market for incremental liquidity. Similar announcements have been made in recent weeks, making this a routine funding exercise.

Where will the proceeds be used?

The filing does not specify the use of proceeds, but typical uses include onward lending, refinancing of existing debt, or general corporate purposes.

Finance - NBFC · Large cap

M&M Financial raises ₹1,000 cr via 7.9% NCDs

Fresh secured NCD issuance at 7.90% fixed coupon over 3 years; size 2.47% of market cap, below materiality threshold.

— 1 earlier story on Mahindra & Mahindra Financial Services Ltd. →

M&MFIN By Tipsheet Editorial 15 Jun 2026 · 4:41 PM IST Verify on BSE · NSE

Mkt cap₹45,668 cr

P/E16.00×

ROE10.51%

Debt / eq.5.53

Div yld2.41%

₹1,000 cr Base ₹500 cr plus green shoe of ₹500 cr

What's new

Fresh issuance of secured, rated, listed NCDs up to ₹1,000 cr on private placement basis.
Fixed coupon of 7.90% with 3-year tenure.
Base issue of ₹500 cr with green shoe option of ₹500 cr.

Why this matters

For a AAA-rated NBFC like M&M Financial, such debt issuances are routine funding activities. The size, at 2.47% of market cap, is too small to materially alter capital structure or growth trajectory. The 7.90% coupon in the current rate environment is unremarkable.

What we're watching

Whether the entire ₹1,000 cr is subscribed given market demand for AAA paper.
Any shift in funding mix towards longer-tenor debt.
Impact on net interest margin if this replaces higher-cost borrowings.

The full read

Mahindra & Mahindra Financial Services has launched a fresh NCD issuance of up to ₹1,000 crore at a fixed 7.90% coupon over 3 years. The base issue is ₹500 crore with a green shoe of ₹500 crore. At 2.47% of its ₹40,483 crore market cap, this falls below the 3% materiality threshold – routine liquidity management for a AAA-rated NBFC. That's why the announcement doesn't move the needle.

Questions answered

What are the key terms of the NCD issuance?: The NCDs are secured, rated, listed, with a fixed coupon of 7.90% per annum and a tenure of 3 years. The base issue size is ₹500 crore with a green shoe option of another ₹500 crore.
How does this issuance compare to M&M Financial's market cap?: At ₹1,000 crore maximum, the issuance represents about 2.47% of the company's market capitalization of ₹40,483 crore, which is below the mid-cap materiality threshold of 3%.
Is this NCD issue a routine activity for M&M Financial?: Yes. As a AAA-rated NBFC, the company regularly taps the debt market for incremental liquidity. Similar announcements have been made in recent weeks, making this a routine funding exercise.
Where will the proceeds be used?: The filing does not specify the use of proceeds, but typical uses include onward lending, refinancing of existing debt, or general corporate purposes.

Mentioned: ₹1,000 cr NCD · 7.90% coupon · 3-year tenure

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Mahindra & Mahindra Financial Services Ltd.

NBFC

₹46,439 cr

P/E 16.27×

Latest quarter · Mar 2026

Total income₹5,539 cr

Net profit₹924 cr

Net margin+16.7%

EPS₹6.75

Leverage & growth

Debt / equity4.82×

Sales CAGR+12.3%

EPS CAGR+9.8%

Story so far

All notes on M&MFIN →

15 Jun 2026 · 4:41 PM IST M&M Financial raises ₹1,000 cr via 7.9% NCDs
4d ago Mahindra Finance Q1 disbursements jump 21% YoY to ₹15,560 cr, asset quality stable