Mahindra and Mahindra Financial Services plans to raise Rs 29,000 crore via non-convertible debenture issuance

Mahindra and Mahindra Financial Services has plans to raise up to Rs 29,000 crore through issuance of non-convertible debentures (NCDs) and seeking shareholders' nod for the same.

In a notice to shareholders, the company said it "proposed to offer or invite subscriptions for secured or unsecured redeemable NCDs, including subordinated debentures in domestic and/or international market in one or more series or tranches, aggregating up to Rs 29,000 crore on a private placement basis".

NCDs, including subordinated debentures issued through private placement, constitute a significant source of borrowings for the company.

"The aggregate borrowings of the company as on March 31, 2017, were Rs 34,670.4 crore, of which NCDs including subordinated debentures comprised Rs 16,391.2 crore," it added.

(With Inputs from PTI)