Tranche 1 With Rs 1,000 Cr Debentures Opens On Apr 25

With an AUM of Rs 95,467 cr, Cholamandalam Investment and Finance Company Limited has 1,166 branches, mostly in small towns.

MUMBAI, Apr 20 (The CONNECT) – Cholamandalam Investment and Finance Company Limited (CIFCL) has announced its maiden public issue of secured, rated, listed redeemable non-convertible debentures (NCD) of the face value of Rs. 1,000 each with a base Issue size of Rs. 500 crores with an option to retain any oversubscription up to Rs 500 crores. This is tranche 1 of the targeted Rs 5,000 cr which the company wants to raise.

The Tranche I Issue opens on April 25, 2023 and closes on May 9, 2023 with an option of early closure, said  Arul Selvan D, president and CFO of the company.

The NCDs are proposed to be listed on BSE and NSE. The designated exchange will be NSE. The NCDs have been rated IND AA+/Stable by India Ratings & Research Private Limited and ICRA]AA+ (Stable) by ICRA Limited.

The Tranche I Issue offers annual coupon rates ranging from 8.25% to 8.40%.  The minimum application size is ₹ 10,000 (10 NCDs) and thereafter in multiples of ₹ 1,000 (1 NCD). The NCDs under the Tranche I Issue are being offered with maturity/ tenor options of 22 months, 37 months and 60 months with annual and cumulative payments options across series I, II, III, IV, V and VI. The effective annual  yield for the NCD holders in all categories of Investors ranges from 8.25% to 8.40%. Investors have options for interest payment modes. for the NCDs is through various modes selected by the investors.

The company had 22.70 Lakh Active Customers across India being served by 1,166 branches across 29 states and union territories as of December 31, 2022. It has a geographically diversified exposure across North, South, East and West regions, 80% of its branches are located in small towns, DSelvan explained.

Its principal businesses include vehicle finance, loan against property and home loans, apart from SME finance. It has recently forayed into providing secured business and personal loans and consumer finance. CIFCL’s Total AUM as on December 31, 2022 was Rs 95,467 crs.

At least 75% of the trance 1 will shall be utilised for onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company, Selvan said.