25-Nov-2023
2 mins read
Cholamandalam Investment and Finance Company Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on November 28, 2023, and closes on December 11, 2023. It will have a base issue size of Rs 500 crore.
About Cholamandalam Investment and Finance Company Limited
Established in 1978, Cholamandalam Investment and Finance Company Limited stands as a significant non-banking finance entity within the NBFC Investment and Credit Company category. As a crucial arm of the Murugappa Group, Cholamandalam has evolved significantly since its inception.
Diversified Financial Offerings: Initially focusing on equipment financing, Chola has expanded its repertoire to encompass a wide array of financial services. This includes vehicle finance, loans against property, home loans, supply chain financing, term loans, equipment financing, loans against securities, and invoice discounting for small and medium-sized enterprises (SMEs). Moreover, Chola caters to consumer and small enterprise loans, along with secured business and personal loans. Additionally, the company extends its expertise to investment advisory services and stock broking.
Subsidiaries and Specializations: Cholamandalam’s influence extends through three subsidiaries, each specializing in distinct financial domains. Cholamandalam Securities Limited (CSL) excels in providing stock broking and depository participant services. Cholamandalam Home Finance Limited (CHFL) focuses on the distribution of insurance products. Payswiff Technologies Private Limited (PTPL) specializes in offering payment gateway services tailored for e-commerce businesses, along with comprehensive e-commerce solutions.
National Reach and Customer Base: With an extensive national presence, Cholamandalam boasts a network comprising over 1,267 branches and 571 resident locations spread across 29 States and Union Territories in India. Impressively, the company serves an active customer base of 30.94 lakh as of September 30, 2023.
Financial Performance of Cholamandalam Investment and Finance Company Limited
| Period Ended | 31-Mar-23 |
| Assets | 113,626.90 |
| Revenue | 13,105.59 |
| Profit After Tax | 2,676.67 |
Cholamandalam Investment and Finance Company Limited NCD Details
| Issue Open | November 28, 2023 – December 11, 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 5000.00 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 | IND AA+/Stable by India Ratings & Research Private Limited and ICRA AA+ (Stable) by ICRA Limited |
| Tenor | 24, 36 and 60 months |
| Series | Series I to VI |
| Payment Frequency | Annually and Cumulative |
| Basis of Allotment | First Come, First Serve Basis |
| Debenture Trustee/s | Idbi Trusteeship Services Limited |
NCD Allocation Ratio of Cholamandalam Investment and Finance Company Limited NCD
| Category | NCD’s Allocated |
| Institutional | 20% |
| Non-Institutional | 35% |
| HNI | 25% |
| Retail | 20% |
Cholamandalam Investment and Finance Company Limited NCD Coupon Rates
| Series | Frequency of Interest Payment | Nature | Tenor | Coupon (% per Annum) | Effective Yield (% per Annum) | Amount on Maturity (In Rs.) |
| Series 1 | Annual | Secured | 24 Months | 8.40% | 8.39% | Rs 1,000.00 |
| Series 2 | Cumulative | Secured | 24 Months | NA | 8.40% | Rs 1,175.32 |
| Series 3 | Annual | Secured | 36 Months | 8.50% | 8.49% | Rs 1,000.00 |
| Series 4 | Cumulative | Secured | 36 Months | NA | 8.50% | Rs 1,277.58 |
| Series 5 | Annual | Secured | 60 Months | 8.60% | 8.59% | Rs 1,000.00 |
| Series 6 | Cumulative | Secured | 60 Months | NA | 8.60% | Rs 1,511.28 |
NCD Rating of Cholamandalam Investment and Finance Company Limited NCD
The NCDs proposed to be issued under this issue have been rated IND AA+/Stable by India Ratings & Research Private Limited and ICRA AA+ (Stable) by ICRA Limited.
Company Promoters of Cholamandalam Investment and Finance Company Limited
The promoters of the company are Cholamandalam Financial Holdings Limited, 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, Murugappa & Sons (M V Subbiah, M A Alagappan & M M Murugappan hold shares on behalf of the firm) Tube Investments of India Limited New Ambadi Estates Private Limited, Coromandel International Limited, Ambadi Enterprises Limited, Carborundum Universal Limited, E.I.D. Parry (India) Limited, and M A Alagappan (holds shares on behalf of Kadamane Estates).
The Objective of the Cholamandalam Investment and Finance Company Limited NCD
The company intends to utilize the raised funds from the Issue, deducting the Issue-related expenses, for the following purposes:
- Facilitating onward lending, financing, and repayment or prepayment of principal and interest on current borrowings.
- Allocations towards general corporate endeavours.Top of Form
Cholamandalam Investment and Finance Company Limited NCD Lead Manager(s)
The lead manager of the NCD is A.K. Capital Services Limited.
How to Apply for Cholamandalam Investment and Finance Company Limited NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the Cholamandalam Investment and Finance Company Limited NCD with Bigul: https://ncd.bonanzaonline.com/.
How to Check the Allotment Status of Cholamandalam Investment and Finance Company Limited NCD
The registrar for Cholamandalam Investment and Finance Company Limited NCD is Kfin Technologies Limited. To check your allotment status, please click on this link: https://kosmic.kfintech.com/ipostatus/
FAQs
- What is Cholamandalam Investment and Finance Company Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by Cholamandalam Investment and Finance Company Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The funds raised from the issue, after deducting related expenses, will be used for lending, repaying existing borrowings, and general corporate purposes.
- What is the issue size and price of the NCD?
The base issue size is Rs 500 crore, with a green shoe option potentially taking the total to Rs 5000 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on November 28, 2023, and closes on December 11, 2023.
- How has the NCD been rated?
The NCD has received a IND AA+/Stable by India Ratings & Research Private Limited and ICRA AA+ (Stable) by ICRA Limited.
- Who are the promoters behind the company?
The company is promoted by Cholamandalam Financial Holdings Limited, 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, Murugappa & Sons (M V Subbiah, M A Alagappan & M M Murugappan hold shares on behalf of the firm) Tube Investments of India Limited New Ambadi Estates Private Limited, Coromandel International Limited, Ambadi Enterprises Limited, Carborundum Universal Limited, E.I.D. Parry (India) Limited, and M A Alagappan (holds shares on behalf of Kadamane Estates).
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in a dematerialised format.
- Who are the lead managers for this NCD issue?
The NCD is being led by A.K. Capital Services Limited.
- How can I apply for the Cholamandalam Investment and Finance Company Limited NCD?
Once the NCD opens for subscription, you can apply through this link: Cholamandalam Investment and Finance Company Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is Kfin Technologies Limited. You can check your allotment status by visiting this link.
- How many series of NCDs are available, and what are their respective tenures?
There are 6 series of NCDs available with varying tenures of 24, 36 and 60 months.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Idbi Trusteeship Services Limited.
- What are the payout options for these NCDs?
Investors have the flexibility to choose between annually and cumulative interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, Cholamandalam Investment and Finance Company will allocate the debentures to applicants on a proportional basis.