Mahindra Finance NCD allotment: ₹875 crore at 7.90% (2026)

Mahindra & Mahindra Financial Services Limited (MMFSL) has allotted ₹875 crore of Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) under Series AB2026, carrying a fixed coupon of 7.90% per annum. The deemed allotment date is May 12, 2026, and the debentures are scheduled to mature on February 21, 2028.

The issuance matters because it is a fresh, secured market borrowing with defined tenor and collateral structure, and it also sits alongside other recent NCD approvals and issuances by the company. The debentures are proposed to be listed on BSE Limited’s Wholesale Debt Market (WDM) Segment.

What was allotted in Series AB2026

MMFSL’s Series AB2026 allotment totals ₹875 crore, structured as a base issue of ₹750 crore and a greenshoe component of ₹125 crore. The issuance comprises 87,500 debentures, each with a face value of ₹1,00,000.

The coupon is fixed at 7.90% per annum, as stated in the issuance details. The instrument is described as secured, rated, listed, and redeemable, and the placement is in the context of debt market fundraising through NCDs.

Key dates: allotment and maturity

The deemed allotment date for Series AB2026 is May 12, 2026. The maturity date is February 21, 2028.

The tenor is also referenced as approximately 650 days in the approval context. For investors tracking NBFC liabilities, the combination of a fixed coupon and a defined maturity date makes the borrowing profile easy to map against upcoming repayments.

Proposed listing on BSE Wholesale Debt Market

The Series AB2026 NCDs are proposed for listing on BSE’s Wholesale Debt Market Segment. Listing on WDM typically supports secondary market visibility for debt instruments and aligns with the “listed” attribute disclosed for the issue.

The documentation referenced in the provided details repeatedly points to BSE Limited’s WDM as the listing venue for these privately placed NCDs.

Security and collateral structure

The Series AB2026 debentures are secured by an exclusive charge in favour of the Debenture Trustee. The security is over present and/or future receivables under loan contracts, hire purchase, lease arrangements, owned assets, and book debts.

The security coverage is described as equivalent to 100% of the outstanding debentures. This is an important structural feature because it defines the collateral backing and trustee charge mechanism referenced across the company’s NCD programmes.

How the ₹1,000 crore approval relates to the ₹875 crore allotment

Separately, MMFSL also received approval to issue up to ₹1,000 crore in secured NCDs, with the issuance capped at ₹1,000 crore and planned for listing on BSE’s WDM Segment. This approved framework is described as a base issue of ₹750 crore plus a greenshoe option of ₹250 crore, with each NCD at a face value of ₹1,00,000, a fixed coupon of 7.90% per annum, and maturity on February 21, 2028.

Within that larger approved ceiling, the company’s stated allotment for Series AB2026 is ₹875 crore (base ₹750 crore plus ₹125 crore greenshoe). The numbers indicate that the greenshoe portion used in the allotment was smaller than the maximum greenshoe permitted under the ₹1,000 crore approval.

Another 2026 issuance: Series AA2026 at 7.71%

MMFSL has also approved an NCD issuance under Series AA2026, described as secured, rated, listed, and redeemable, via private placement. The issue size is up to ₹1,000 crore, with a base of ₹500 crore and a greenshoe option of ₹500 crore.

Series AA2026 carries a fixed coupon rate of 7.71% per annum. The allotment date is April 28, 2026, and the maturity date is March 28, 2029, with the tenure stated as 2 years and 334 days. The listing venue is again stated as BSE’s Wholesale Debt Market Segment, and the security structure is described in similar terms, including 100% coverage of the debenture outstanding amount.

Snapshot table: AB2026 vs AA2026 (as disclosed)

Earlier reference points: 2025 and 2024 NCD actions

In July 2025, the Committee of Directors approved raising up to ₹100 crore through issuance of up to 10,000 secured redeemable NCDs (₹1,00,000 face value each) via private placement. The deemed allotment date was July 15, 2025, with maturity scheduled for June 29, 2027. The coupon attached to that issuance was fixed at 7.05% per annum, and the debentures were stated to be listed on BSE’s Wholesale Debt Market segment.

Separately, the company also disclosed board authorisation to raise up to ₹1,250 crore via secured, rated, listed and redeemable NCDs, with a base size of ₹750 crore and a greenshoe option of ₹500 crore. That instrument carried a fixed coupon of 8.01% per annum, with a deemed allotment date of September 26, 2024 and maturity on December 24, 2027, and involved up to 1,25,000 debentures of ₹1 lakh face value.

Market impact: what these disclosures signal

The immediate market-relevant takeaway from the AB2026 disclosure is the confirmed allotment size of ₹875 crore at a fixed 7.90% coupon and a defined maturity in February 2028. For debt investors and analysts, this provides a clear datapoint on MMFSL’s cost of funds for this tranche and the maturity bucket it adds to.

The parallel set of disclosures about AA2026 (7.71% fixed, maturity in March 2029) and earlier NCD actions (including the 2025 ₹100 crore issuance at 7.05% and the 2024 8.01% NCD plan) helps place AB2026 within an ongoing pattern of market borrowings through listed, secured NCDs.

Other fundraising context mentioned

The provided details also mention that Mahindra Finance increased its borrowing limit to ₹1.75 lakh crore from ₹1.50 lakh crore, subject to shareholder approval, and that fundraising via non-convertible debentures was approved up to ₹65,000 crore. These points, as stated, add broader context on the company’s headroom for borrowings and the role of NCDs as a funding channel.

Conclusion

MMFSL’s ₹875 crore Series AB2026 allotment fixes the cost at 7.90% per annum and locks in maturity on February 21, 2028, with the instrument proposed for listing on BSE’s WDM segment and backed by a trustee charge with 100% security coverage. Alongside the separately disclosed Series AA2026 framework and earlier NCD issuances, the AB2026 details add another confirmed data point on the company’s secured market borrowings and maturity schedule.