Cholamandalam Investment and Finance Company (CIFCL), founded in 1978, is the financial services branch of the Murugappa group, headquartered in Chennai. The company primarily engages in the commercial vehicle financing and loan against property industries. CIFCL entered the small and medium enterprise loan and housing finance businesses in FY15.
CIFCL has an excellent franchisee network and a reasonably varied product portfolio, which has helped it develop an established reputation in the car loan industry. It had 1,166 branches in India as of December 2022. Approximately 80% of CIFCL’s branches are located in rural areas. As of December 2022, the company’s network is diverse, with no single region (North/South/East/West) accounting for more than 30% of total branches. Loans are available for commercial vehicles, passenger vehicles, two-wheelers, tractors, construction equipment, residences, SMEs, and other uses.
The AUM raised by 31% year on year in 9M FY2023, compared to 10% year on year in FY2022, with a compound annual growth rate (CAGR) of 20% between March 2017 and March 2021. The AUM was INR 95,468 crores in December 2022, with auto finance, home equity, home finance, and new companies contributing 64%, 21%, 8%, and 7%, respectively.
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 pursuant to this Issue.
Cholamandalam Investment NCD Tranche I April 2023 Detail
| Issue Open | Apr 25, 2023 – Apr 27, 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 |
| Series | Series I to VI |
| Payment Frequency | Annually and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trusties | Idbi Trusteeship Services Ltd. |
NCD Allocation Ratio
| Category | NCD’s Allocated |
|---|---|
| Institutional | 20% |
| Non-Institutional | 25% |
| HNI | 25% |
| Retail | 30% |
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 1,000,000 |
| Non-Institutional | 1,250,000 |
| HNI | 1,250,000 |
| Retail | 1,500,000 |
| Total NCD’s | 5,000,000 |
Cholamandalam Investment and Finance Company Limited NCD 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 1,497.40 |
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 promoters.
Cholamandalam Investment and Finance Company Limited Financial Information (Restated Consolidated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 31-Mar-18 | 44,089.73 | 5,479.66 | 918.30 |
| 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 |
Cholamandalam Investment NCD Tranche I April 2023 Subscription Status
The Cholamandalam Investment NCD Tranche I April 2023 was subscribed 5.17 times on Apr 27, 2023 5:00:00 PM. The NCD subscribed 2.05 times in Retail, 2.06 times in HNI, 10.49 times in Non-Institutional, and 7.10 times in the Institutional category.
| Category ? | Subscription (times) |
|---|---|
| Retail | 2.05x |
| HNI | 2.06x |
| Non-Institutional | 10.49x |
| Institutional | 7.10x |
| Total | 5.17x |
Objects of the Issue
The proceeds from the issue will be used for the following objects:
- Onward lending, financing, and repayment of interest and principal of existing borrowings of the company.
- General corporate purposes.
Company Contact Information
Cholamandalam Investment and Finance Company Limited
Dare House, No. 2,
N.S.C. Bose Road, Parrys,
Chennai 600 001, Tamil Nadu
Phone: +91 44 4090 7172
Email: investors@chola.murugappa.com
Website: http://www.cholamandalam.com
Cholamandalam Investment NCD Tranche I April 2023 Registrar
Kfin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: chola.ncdipo@kfintech.com
Website: https://karisma.kfintech.com
Cholamandalam Investment NCD Tranche I April 2023 Lead Manager(s)
- A.K. Capital Services Limited
Cholamandalam NCD April 2023 FAQs
Q1. What are the face value and lot size of Cholamandalam NCD April 2023?
Ans. The NCDs will be issued at a face value of INR 1,000 each NCD and the minimum lot size is 10 NCDs.
Q2. What is the frequency of interest payment in Cholamandalam NCD April 2023?
Ans. The frequency of payment for Cholamandalam NCD is Annual, & Cumulative.
Q3. What is the basis of allotment in the Cholamandalam NCD April 2023 offer?
Ans. Cholamandalam NCDs will be allotted on a First Come First Serve Basis.
