26-Oct-2023
2 mins read
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Cholamandalam Investment and Finance Company Limited has introduced a new public offering of Secured and Redeemable Non-Convertible Debentures (NCD), totalling Rs 5000 Crores. The NCD comprises a base issue size of Rs 500 Crores, making it an attractive investment option for individuals looking to grow their savings.
The subscription for this NCD is open from July 28 2023, until August 10 2023. The NCD is being issued in eight series, labelled Series I to VIII, and each NCD is priced at Rs. 1000. One can participate in this offering by subscribing with a minimum ticket size of Rs. 10,000, which translates to 10 NCDs. The NCD comes with three tenor options: 22 months, 37 months, and 60 months. The NCDs offer varying coupon rates, ranging from 8.25% to 8.40% per annum.
About Company
Established in 1978, Cholamandalam Investment and Finance Co. Ltd. (CIFCL) serves as the financial services division of the Murugappa Group, with a history of over 122 years. CIFCL, an NBFC-ICC, initially began as an equipment financing company. It has since broadened its scope to provide vehicle finance, loans against property, home loans, loans for small and medium-sized enterprises (SMEs), consumer and consumer and small enterprise loans, and secure business and personal loans.
The company also delivers stockbroking and other financial services to clients through its subsidiaries. As of December 31, 2022, CIFCL had an active customer base of 22.70 lahks across India, with 1,166 branches spanning 29 states and union territories. As of December 2022, the company employed 13,277 individuals.
CIFCL has capitalized on its expertise and experience in the vehicle finance sector and its association with original equipment manufacturers (OEMs) and dealers to expand its operations and extend its network. Furthermore, as part of the Murugappa Group, CIFCL has reaped substantial benefits by leveraging the group’s brand and existing clientele.
Financial Performance of Cholamandalam Investment and Finance Company Limited NCD (In Crore)
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
| 31-Mar-18 | 44,089.73 | 5,479.66 | 918.3 |
| 31-Mar-19 | 57,490.12 | 7,108.83 | 1,196.94 |
| 31-Mar-20 | 64,058.38 | 8,712.63 | 1,053.72 |
| 31-Mar-21 | 74,644.16 | 9,639.72 | 1,521.39 |
| 31-Mar-22 | 82,478.68 | 10,231.81 | 2,158.89 |
Important Dates of Cholamandalam Investment and Finance Company Limited NCD
| Issue Open | Jul 28, 2023 – Aug 10, 2023 |
| Security Name | Cholamandalam Investment and Finance Company Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 500.00 Crores |
| Issue Size (Shelf) | Rs 5,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | ICRA AA+ (Stable) by ICRA Limited and IND AA+ (Stable) by India Ratings & Research Private Limited |
| Tenor | 22, 37 and 60 months |
Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 |
| Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative | Annual | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 22 Months | 22 Months | 37 Months | 37 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 8.25% | NA | 8.30% | NA | 8.40% | NA |
| Effective Yield (% per Annum) | 8.26% | 8.25% | 8.30% | 8.30% | 8.39% | 8.40% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,156.64 | Rs 1,000.00 | Rs 1,279.15 | Rs 1,000.00 | Rs 1,497.41 |
NCD Rating
This debt offering is rated IND AA+ / Stable by India Ratings and Research Pvt. Ltd. and ICRA AA+ / Stable by ICRA Ltd.
Promoters of Cholamandalam Investment and Finance Company Limited NCD
The promoters of the company include Ambadi Investments Limited, M V Subbiah, M A Alagappan, A Vellayan, A Venkatachalam, M M Murugappan, M M Venkatachalam, M A M Arunachalam, S Vellayan, Arun Alagappan, M M Veerappan, V Narayanan, V Arunachalam, M M Muthiah, M V Muthiah, Arun Venkatachalam, M V Subramanian, M V Murugappan HUF, M V Subbiah HUF, M A Alagappan HUF, A Vellayan HUF, A Venkatachalam HUF, M M Murugappan HUF, M A M Arunachalam HUF, M M Venkatachalam HUF, M M Muthiah HUF, A M M Arunachalam HUF, and Murugappa & Sons (M V Subbiah, M A Alagappan & M M Murugappan hold shares on behalf of the firm). The following entities are also associated with the promoters: Tube Investments of India Limited, New Ambadi Estates Private Limited, Carborundum Universal Limited, and EID. Parry (India) Limited, M A Alagappan (holds shares on behalf of Kadamane Estates), Coromandel International Limited, and Ambadi Enterprises Limited.
The Objective of Cholamandalam Investment and Finance Company Limited NCD
The funds will be used for several purposes, including onward lending, financing, and repayment of interest and principal on the company’s existing borrowings. Additionally, the proceeds will also be allocated towards general corporate purposes.
Lead Managers of Cholamandalam Investment and Finance Company Limited NCD
The lead manager for the CIFCL NCD is AK CAPITAL SERVICES LIMITED.
How to Apply for Cholamandalam Investment and Finance Company Limited NCD
Wait for the NCD to open for subscription, then click on this link to apply for the CIFCL NCD with Bigul https://ncd.bonanzaonline.com/.
How to Check Allotment Status of Cholamandalam Investment and Finance Company Limited NCD
The registrar for CIFCL NCD is KFin Technologies Limited. To check your allotment status, please click on this link https://karisma.kfintech.com/
FAQ-
- When is the Cholamandalam Investment NCD Tranche II July 2023 public issue taking place?
The NCD opened on July 28 and will be closed on August 10. It is important to note that the public issue of NCD may close early if it is fully subscribed (base + shelf) before the closing date.
- What is the timetable for Cholamandalam Investment NCD Tranche II July 2023?
The key dates for the Cholamandalam Investment and Finance Company Limited NCD IPO are as follows:
- Bid/Offer Opens on July 28, 2023
- Bid/Offer Closes on August 10, 2023
- What is the pricing for the Cholamandalam Investment NCD Tranche II July 2023 issue?
The price for the Cholamandalam Investment NCD Tranche II July 2023 issue is set at Rs 1,000 per NCD.
- How often will interest payments be made for Cholamandalam Investment NCD Tranche II in July 2023?
The interest payment frequency for the Cholamandalam Investment NCD Tranche II July 2023 is annual and cumulative.
- What is the minimum application size for investing in the Cholamandalam Investment NCD Tranche II July 2023 public issue?
Each application must be for a minimum of 10 NCDs and multiples of 1 NCD thereafter.
- What are the tenors for the Cholamandalam Investment NCD Tranche II July 2023 bonds?
The NCDs have fixed maturity dates of 22, 37, and 60 months.
- On which stock exchanges are the Cholamandalam Investment and Finance Company Limited NCDs proposed to be listed?
The NCDs are proposed to be listed on BSE and NSE.
