India Ratings and Research (Ind-Ra) has assigned Mahindra & Mahindra (M&M) Rs 4.75 billion unsecured, non-convertible debenture (NCD) programme a final 'AAA' rating with Stable Outlook.

The rating action is based on the receipt of final documentation conforming to information previously shared by the company with the agency. A list of outstanding ratings is at the end of this commentary.

The proceeds of the NCDs are to be used for capex, long-term working capital expenditure, and other general corporate purposes. The NCDs are being issued with a face value of INR1m and entail a coupon of 7.57%, which will be paid annually.

They have a tenor of 10 years with a bullet payment at the end of the tenor. The NCDs will be listed on the wholesale debt market segment of the Bombay Stock Exchange. Axis Trustee has been appointed as a trustee for this issue.

Ind-Ra has taken a consolidated view of M&M and all its non-financial subsidiary companies to arrive at the rating, excluding its financial services subsidiary, Mahindra & Mahindra Financial Services (MMFSL, 'AAA'/Stable).

Shares of the company gained Rs 6, or 0.43%, to trade at  Rs 1,385.85.  The total volume of shares traded  was  22,207 at the BSE (12.25 p.m., Tuesday).