Cholamandalam Investment NCD opens for subscription on 28 November 2023. The company aims for a base issue size of ₹500 Crores.
About the company
Incorporated in 1978, Cholamandalam Investment and Finance Company (CIFCL) is the financial services arm of Chennai-based Murugappa Group. The company operates primarily in Vehicle Finance, Loan Against Property, Home Loans, and New Businesses. In FY15, CIFCL ventured into the small and medium enterprise loan and housing finance business. The vehicle finance segment is principally engaged in financing and refinancing new and used vehicles, particularly LCVs, and SCVs. It also finances two-wheelers, three-wheelers, tractors, cars, MUVs, HCVs, and construction equipment. Further, it has also forayed into financing two-wheeler EVs.
As of 30 September 2023, it had 1,267 branches and 571 resident locations across 29 States and Union Territories in India. About 80% of CIFCL’s branches are in rural areas. The company’s vehicle finance segment represented 72.03%, 68.76%, 62.85%, and 60.68% of the total AUM as of 31 March 2021, 2022, 2023, and 30 September 2023 respectively, and the company’s Loan Against Property segment represented 21.11%, 21.84%, 20.27%, and 19.90%.
Objectives of the Issue
- For onward lending, financing, and for repayment of interest and principal of existing debt of the Company.
- General corporate purposes.
Cholamandalam Investment NCD Details
| Issue Open | November 28, 2023 – December 1, 2023 |
| Security Name | Cholamandalam Investment and Finance Company Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 500.00 Crores |
| Issue Size (Shelf) | ₹ 5,000.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 for 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 Ltd. |
Cholamandalam Investment NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 Months | Annual | 8.40% | 8.39% | ₹ 1,000 |
| Series 2 | 24 Months | Cumulative | NA | 8.40% | ₹ 1,175.32 |
| Series 3 | 36 Months | Annual | 8.50% | 8.49% | ₹ 1,000 |
| Series 4 | 36 Months | Cumulative | NA | 8.50% | ₹ 1,277.58 |
| Series 5 | 60 Months | Annual | 8.60% | 8.59% | ₹ 1,000 |
| Series 6 | 60 Months | Cumulative | NA | 8.60% | ₹ 1,511.28 |
Cholamandalam Investment NCD Rating
The company has received a rating of ICRA AA+ (Stable) by ICRA Limited and IND AA+ (Stable) by India Ratings & Research Private Limited for the NCDs proposed to be issued under this Issue.
Company Financials
| Period Ended | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 113,626.90 | 82,478.68 |
| Revenue | 13,105.59 | 10,231.81 |
| Profit After Tax | 2,676.67 | 2,158.89 |
Cholamandalam Investment NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 1,000,000 |
| Non-Institutional | 1,750,000 |
| HNI | 1,250,000 |
| Retail | 1,000,000 |
| Total NCD’s | 5,000,000 |
Company Promoters
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, M A Alagappan (holds shares on behalf of Kadamane Estates) are the company’s promoters.
Cholamandalam Investment NCD Lead Manager
A.K. CAPITAL SERVICES LIMITED
603, 6th Floor, Windsor Off CST Road,
Kalina Santacruz (East), Mumbai – 400 098 Maharashtra
Phone: +91 22 6754 6500
Email: chola.ncd2023@akgroup.co.in
Website: www.akgroup.co.in
Cholamandalam Investment Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower B Plot 31-32,
Gachibowli Financial District Nanakramguda Serilingampally,
Hyderabad Rangareddi – 500 032 Telangana, India
Phone: +91 40 6716 2222
Email: chola.ncdipo@kfintech.com
Website: www.kfintech.com
Cholamandalam Investment Contact Details
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
Chola Crest, C54-55 and Super B-4,
Thiru-Vi-Ka Industrial Estate, Guindy,
Chennai 600032, Tamil Nadu, India
Phone: +91 44 4090 7172
Email: investors@chola.murugappa.com
Website: www.cholamandalam.com
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in Cholamandalam Investment NCD is purely your personal choice. make a good study and analysis before you make the investment decision.
Happy Investing
