Cholamandalam Investment and Finance Company Ltd (CIFCL) today opened its maiden public issue of secured, rated, listed redeemable non-convertible debentures (NCDs) of the face value of ₹1,000 each with a base issue size of ₹500 crore.
In a regulatory filing, the Chennai-based financial services company said the issue has an option to retain oversubscription up to ₹500 crore aggregating up to ₹1,000 crore; which is within a shelf limit of ₹5,000 crore.
The Tranche I Issue, which opened on Tuesday, closes on May 9 with an option of early closure. The NCDs are proposed to be listed on BSE and NSE. The NCDs have been rated “IND AA+/Stable” by India Ratings & Research and “AA+ (Stable)” by ICRA.
The issue comes with 22-, 37-, and 60-month tenor with annual and cumulative coupon payment options with coupon rates ranging from 8.25 per cent to 8.40 per cent per annum. The minimum application size would be ₹10,000 (i.e., 10 NCDs) and thereafter in multiples of ₹1,000 (i.e. 1 NCD) thereof.
CIFCL is the financial services arm of Chennai-based conglomerate Murugappa group. Its principal businesses include vehicle finance, loan against property and home loans. It also provides financing to SMEs, Consumer and Small Enterprises. As of December 2022, CIFCL’s total assets stood at ₹95,467 crore.
Shares of CIFCL closed flat on Tuesday at ₹840.85 apiece on NSE.