M&M Financial Services has approved the issuance of up to ₹2,000 crore in Secured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) through a private placement. The Debenture Issuance Committee authorized this fresh issuance on September 24, 2026, aiming to raise capital within existing shareholder-approved borrowing limits.

The issue is structured with a base size of ₹1,000 crore and a green shoe option for an additional ₹1,000 crore. The debentures carry a face value of ₹1,00,000 each and will be listed on the Wholesale Debt Market Segment of BSE Limited. The instrument offers a fixed coupon rate of 7.95% per annum.

Issue structure and terms

The proposed securities are designed as a short-to-medium term debt instrument with a specific maturity profile. The total number of securities proposed for issuance is up to 2,00,000 non-convertible debentures. The allotment is scheduled for September 29, 2026, with a final maturity date of September 28, 2029.

Security and redemption mechanism

The debentures are secured by an exclusive charge in favor of the Debenture Trustee on present and/or future receivables under loan contracts, hire purchase agreements, leases, owned assets, and book debts. This security cover extends to 1.1 times the outstanding debenture amount, provided the assets are free from any encumbrances.

In the event of a default in payment of coupons or principal redemption, the company is liable to pay additional interest at 2% per annum over the coupon rate for the defaulting period. The principal amount of ₹1,00,000 per debenture will be redeemed on the maturity date.

Coupon payment schedule

Interest payments are structured annually, with the final coupon period adjusted for the leap year cycle and remaining days until maturity.

What the numbers show

The issuance structure reveals a strategic balance between immediate capital needs and cost efficiency. By setting a base issue of ₹1,000 crore with a matching green shoe option, the company retains flexibility to scale up only if demand supports it, avoiding unnecessary interest burden if market conditions shift. Furthermore, the security cover of 1.1x on receivables indicates a conservative approach to collateralization, potentially supporting the rated status of the instruments and appealing to risk-averse institutional investors despite the relatively high coupon rate of 7.95% compared to broader sovereign benchmarks.

Mahindra & Mahindra Financial Services will host an in-person investor conference in Mumbai on Tuesday, September 22, 2026, from 1:00 pm to 4:00 pm.

The company disclosed the schedule under Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Officials from the NBFC will attend one-on-one and group meetings with several funds and investors.

Meeting Details

The event is part of the J.P. Morgan India Conference. Participants will discuss the business overview and quarterly updates for Q1 FY27. These figures were previously communicated to stock exchanges via letters dated July 2, 2026, and July 21, 2026.

The company stated that no unpublished price-sensitive information would be shared during the conference. Registrations are not required for attendees.

Regulatory Compliance

This disclosure was made by Brijbala Batwal, Company Secretary, on September 17, 2026. The notice is hosted on the company’s website in compliance with Regulation 46(2) of the SEBI Listing Regulations.