Mahindra Finance to raise up to 2,000cr via NCDs
Business
Mahindra Finance just announced it's raising up to ₹2,000 crore by selling non-convertible debentures (NCDs), basically, a way for companies to borrow money from investors without giving up ownership.
Each NCD has a face value of ₹1 lakh, offering a fixed 7.95% interest rate per year.
Two 1,000cr tranches listed BSE
The NCDs will roll out in two rounds of ₹1,000 crore each and will be listed on the BSE's Wholesale Debt Market Segment.
They're secured by an exclusive charge on the company's receivables and mature in September 2029.
If you're wondering about returns: interest gets paid out annually before the principal comes back at maturity, plus there are extra penalties if payments are late.
Mahindra Finance shares down 2.77% recently
This move comes as Mahindra Finance shares closed down 2.77% recently.