M&M Financial Services gets nod to raise Rs 10,000 cr

Mahindra & Mahindra Financial Services Friday said that it has received approval from Registrar of Companies to raise up to Rs 10,000 crore through non-convertible debentures.

The company informed stock exchanges that it will issue "secured redeemable non-convertible debentures and/or unsecured subordinated redeemable non-convertible debentures of face value of Rs 1,000 each for an amount up to Rupees 10 thousand crores".

The NCDs will be issued in one or more tranches up to the shelf limit of Rs 10,000 crore, it added.

Tranche 1 of the "issue consists of secured redeemable non-convertible debentures of face value of Rs 1,000 each and/ or Unsecured, subordinated, redeemable non-convertible debentures of face value of Rs 1,000 each (unsecured NCDs) for an amount aggregating up to Rs 500 crore ("base issue size") with an option to retain oversubscription up to Rs 3,000 crore aggregating up to Rs 3,500 crore".

The secured NCDs will be allotted for a value of up to Rs 2,500 crore and the unsecured NCDs will be allotted for a value of up to Rs 1,000 crore within the overall limit of Rs 3,500 crore, the company said.

"The unsecured NCDs will be eligible for Tier II Capital," it added.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)