Murugappa Group’s Cholamandalam Investment and Finance Co Ltd plans to set up a housing finance company as it sees potential opportunities to grow in this business.
The company’s Board, on Wednesday, approved setting up of a housing finance company as a subsidiary and approved necessary authorisations to make an application to the National Housing Board, it said in a communiqué to stock exchanges.
Affordable homesThe company focuses on affordable home projects with an average loan size of ₹15-20 lakh. It has already built a home loan book of about ₹700 crore.
Cholamandalam also plans to raise ₹500 crore through masala bonds, which are rupee-denominated bonds issued in the overseas markets.