Mahindra & Mahindra Financial Services Ltd has approved the issuance of secured, redeemable non-convertible debentures (NCDs) aggregating up to ₹1,000 crore on a private placement basis. The debentures, designated as Series AD2026, carry a fixed coupon rate of 7.90% per annum and are rated instruments to be listed on the Wholesale Debt Market Segment of BSE Limited. The issuance comprises a base issue size of ₹500 crore with a greenshoe option to retain an additional ₹500 crore, subject to market conditions.

The Debenture Issuance Committee, authorized by the Board of Directors, approved the proposal on June 15, 2026. The instruments have a tenure of three years, or 1,096 days, from the deemed date of allotment, which is set for June 18, 2026. The maturity date for the debentures is June 18, 2029. The face value of each debenture is Rs. 1,00,000, and the pay-in amount will be determined based on bid prices received through the Electronic Bidding Platform.

Security and Payment Structure

The NCDs are secured by way of an exclusive charge in favor of the Debenture Trustee on present and future receivables under loan contracts, hire purchase, and lease agreements. Additionally, the charge covers owned assets and book debts to the extent of 100% of the outstanding debentures. The company will create the appropriate security within the time frame prescribed by applicable law, ensuring the assets are free from any encumbrances.

In the event of a delay in payment of interest or principal for more than three months from the due date, the company will pay additional interest at 2% per annum over the coupon rate for the defaulting period. The debentures do not carry any special rights, interests, or privileges beyond the standard terms.

Coupon and Redemption Schedule

The interest payments will be made annually on June 18 each year until maturity. The principal amount will be repaid in full on the maturity date. The schedule for cash flows per debenture is outlined below:

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE774D01024/3c64b2a3a8d043fd.pdf

Mahindra & Mahindra Financial Services Limited has recommended a final dividend of Rs 7.50 per equity share, representing 375% of the face value of Rs 2 each, for the financial year ended March 31, 2026. The dividend will be paid to shareholders whose names appear in the Register of Members or records of the company as on the close of business hours on July 13, 2026. This payout is subject to the approval of the members at the ensuing 36th Annual General Meeting scheduled for July 21, 2026.

The Board of Directors approved the recommendation at its meeting held on April 24, 2026. The company has notified shareholders that the dividend will be paid only in electronic mode, adhering to SEBI (LODR) (Fifth Amendment) Regulations, 2025. Consequently, physical dividend warrants or cheques will not be issued.

Tax Deduction and Compliance Requirements

Under the provisions of the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders. The company is required to deduct Tax Deducted at Source (TDS) at 10% for resident shareholders with a valid Permanent Account Number (PAN) and 20% for those without or with an invalid PAN. For Non-Resident shareholders, TDS will be deducted at rates prescribed under the Act or Double Taxation Avoidance Agreement, if applicable. No TDS is required if the total dividend payable to a Resident Individual shareholder does not exceed Rs 10,000 in a financial year.

Shareholders seeking tax exemption or lower tax deduction must submit the necessary documents to the company's Registrar and Share Transfer Agent, KFin Technologies Limited, on or before July 6, 2026. The specific forms and applicable tax rates are detailed in Annexure A available on the company's website. The company has emphasized that documents received after the deadline will not be accepted.

Key Dates and Deadlines

Additional Shareholder Directives

The company has urged shareholders holding shares in physical form to complete mandatory Know Your Customer (KYC) requirements to receive dividend payments. This includes furnishing PAN, nomination, contact details, and bank account information via Form ISR-1. Payments will remain unpaid until these KYC norms are met. Furthermore, the company advised physical shareholders to dematerialise their holdings at the earliest, as transfer and transmission requests will be processed only in dematerialised mode.

In a measure to reduce unclaimed dividends, the company may proactively transfer unclaimed amounts to the bank accounts of shareholders who have updated their details. Shareholders who do not wish for this transfer must notify the company otherwise.