Key Points of Mahindra Finance Debenture Raise Plans:
- Mahindra & Mahindra Financial Services (Mahindra Finance) plans to raise up to Rs 8,000 crore through debentures in FY24 to support business growth.
- The company holds significant unutilized bank limits which provide it with the flexibility to raise funds at competitive costs to meet increasing funding requirements.
- Mahindra Finance has a diverse borrowing mix including sources such as debentures NCDs, securitization, fixed deposits, and bank borrowing.
- The company has maintained a comfortable liquidity chest of about three months’ requirement, according to the NBFC’s filing with BSE.
- On January 6, CRISIL upgraded Mahindra Finance’s rating for bank loans and debt from AA+ to AAA, driven by the stronger support stance of the parent company, Mahindra and Mahindra, and the improvement in business performance.
- Mahindra Finance’s business assets have risen by 27 percent year on year to Rs 82,300 crore at the end of March 2023 (FY23), reflecting a strong credit offtake in the system.
- The fairly diverse borrowing mix is expected to contribute to the company’s growth and success in the coming years.
Details of Mahindra Finance Debenture Raise Plans:
Mahindra & Mahindra Financial Services (Mahindra Finance) has announced plans to raise up to Rs 8,000 crore through debentures in FY24 to support the growth of its business. This move is in addition to the credit lines it already holds for bank funding, as reported by Rating agency CRISIL.
Mahindra Finance is known for its stable and diverse resource profile. The company holds significant unutilized bank limits which provide it with the flexibility to raise funds at competitive costs to meet increasing funding requirements. CRISIL has reported that this diversity in borrowing mix is constituted of sources such as 26.2 percent of debentures NCDs, 11.4 percent of securitization, 8.4 percent of fixed deposits, and 38.5 percent of bank borrowing at the end of December 2022.
According to the NBFC’s filing with BSE, Mahindra Finance has maintained a comfortable liquidity chest of about three months’ requirement. On January 6, CRISIL upgraded Mahindra Finance’s rating for bank loans and debt from AA+ to AAA, driven by the stronger support stance of the parent company, Mahindra and Mahindra, and the improvement in business performance.
With the reflection of strong credit offtake in the system, Mahindra Finance’s business assets have risen by 27 percent year on year to Rs 82,300 crore at the end of March 2023 (FY23). The fairly diverse borrowing mix is expected to contribute to the company’s growth and success in the coming years.
About Mahindra Finance:
Mahindra & Mahindra Financial Services Ltd, a Mumbai-based rural non-banking financial company, is one of the leading financiers of tractors in India. With over 1000 offices spread across the country, the company started its operations on January 1, 1991, under the name Maxi Motors Financial Services Ltd.
For More Latest News Click Here
