Cholamandalam Investment and Finance Company (CIFCL), founded in 1978, is the financial services branch of the Murugappa group, situated in Chennai. The company’s primary business is commercial vehicle financing and loan against property. CIFCL entered the small and medium enterprise loan and home finance market in FY15.
CIFCL has a solid franchisee network and a reasonably varied product portfolio, which has helped it develop a prominent position 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 purposes. The AUM increased 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. In December 2022, the AUM was INR 95,468 crores, with auto finance, home equity, home finance, and new companies contributing for 64%, 21%, 8%, and 7%, respectively.
Cholamandalam NCD July 2023 Details
| Subscription Dates | 28 July – 10 August 2023 |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Face Value | INR 1,000 per NCD |
| Issue Price | INR 1,000 per NCD |
| Issue Size (Base) | INR 500 crores |
| Overall Issue Size (including oversubscription) | INR 1,500 crores |
| Minimum Lot Size | 10 NCDs |
| Market Lot | 1 NCD |
| Tenor | 22 Months 37 Months 60 Months |
| Credit Rating | ICRA AA+/Stable IND AA+/Stable |
| Category Reservation | Category 1 (QIB): 30% Category 2 (NII): 25% Category 3 (HNI): 25% Category 4 (Retail): 20% |
| Basis of Allotment | First Come First Serve |
| Listing On | BSE, NSE |
Cholamandalam NCD July 2023 – Objects of the Issue
- Onward lending, financing, and repayment of interest and principal of existing borrowings of the company
- General corporate purposes
Cholamandalam NCD July 2023 – Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
|---|---|---|---|---|---|
| Series 1 | 22 Months | Annual | 8.25% | 8.26% | INR 1,000 |
| Series 2 | 22 Months | Cumulative | NA | 8.25% | INR 1,156.64 |
| Series 3 | 37 Months | Annual | 8.3% | 8.30% | INR 1,000 |
| Series 4 | 37 Months | Cumulative | NA | 8.30% | INR 1,279.15 |
| Series 5 | 60 Months | Annual | 8.4% | 8.39% | INR 1,000 |
| Series 6 | 60 Months | Cumulative | NA | 8.40% | INR 1,497.41 |
Cholamandalam Non-Convertible Debentures Lead Managers
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: https://www.akgroup.co.in
Cholamandalam Non Convertible Debentures 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: https://www.kfintech.com
Cholamandalam Contact Details
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
Dare House, No. 2, N.S.C. Bose Road,
Parrys, Chennai 600 001, Tamil Nadu, India
Phone: +91 44 4090 7172
Email: investors@chola.murugappa.com
Website: https://www.cholamandalam.com
Cholamandalam NCD Documents
- Cholamandalam NCD Tranche II Prospectus
- Cholamandalam NCD Draft Prospectus
- Upcoming NCDs
Cholamandalam Investment FAQs :
Q1. What is the face value and lot size of Cholamandalam NCD July 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 July 2023?
Ans. The frequency of payment for Cholamandalam NCD is Annual.
Q3. What is the basis of allotment in Cholamandalam NCD July 2023 offer?
Ans. Cholamandalam NCDs will be allotted on a First Come First Serve Basis.
