Cholamandalam Investment and Finance Company Limited NCD Company Profile:
Cholamandalam Investment and Finance Company Limited, founded in 1978 as the financial services branch of the Murugappa Group, started out as an equipment financing company and has since expanded to offer a range of financial services, including vehicle finance, home loans, and investment advisory services. With 1166 branches throughout India, Chola has over INR 1,03,789 Crores in assets under management and aims to help its customers improve their lives. The company boasts over 21 lakh satisfied customers across India and has always prioritized ethics and responsibility to its customers, shareholders, employees, and society.
Cholamandalam Investment and Finance Company Limited is coming out with a debt offering of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures with a face value of ₹1000 each, Base Issue size of ₹500 Crore with an option to retain oversubscription up to ₹500 Crores aggregating up to ₹1000 crores being the Tranche-I Issue size. The issue opens for subscription on Tuesday, 25th April 2023, and will close on or before Tuesday, 9th May 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.
Cholamandalam Investment and Finance Company Limited NCD Details:
|Tranche I Issue opens:||Tuesday, 25th April 2023|
|Tranche I Issue closes:||Tuesday, 9th May 2023|
|Allotment:||First Come First Serve Basis|
|Face Value:||₹ 1,000 per NCD|
|Nature of Instrument:||Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs)|
|Minimum Application:||₹10,000/- (10 NCDs) and in multiples of ₹1,000/- (1 NCD) thereafter.|
|Listing:||The NCDs are proposed to be listed on BSE & NSE|
|Credit Rating:||“IND AA+/Stable & ICRA AA+(Stable)”|
|Tranche I Issue Size:||Base Issue size of ₹500 Crore with an option to retain oversubscription up to ₹500 Crores aggregating up to ₹1000 crores|
|Registrar:||KFin Technologies Limited|
|Trustee:||IDBI Trusteeship Services Limited|
|Depositories:||NSDL and CDSL|
|Category||I – Institutional (“QIB”)||II – Non-Institutional (“Corporates”)||III – High Net worth
(Amount aggregating to
above ₹ 10 lakh)
|IV– Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh)|
|Category Allocation of the Overall Issue Size||20%||25%||25%||30%|
|Bucket Size (₹) assuming Issue size of ₹ 1000 Cr||₹ 200 Cr||₹ 250 Cr||₹ 250 Cr||₹ 300 Cr|
Cholamandalam Investment and Finance Company Limited NCD Specific Terms of the Prospectus:
The terms of the NCDs offered under the Issue are as follows:
|Frequency of Interest Payment||Annual||Cumulative||Annual||Cumulative||Annual||Cumulative|
|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%||8.00%||8.39%||8.40%|
|Redemption Amount (₹ / NCD)||1,000.00||1,156.64||1,000.00||1,279.15||1,000.00||1,497.40|
*- The company shall allocate and allot Series III NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
For any queries related to the NCD, you can consult the team at Elite Wealth. Since Demat is mandatory for investing in this particular NCD, the investor must open a Demat account with a trusted broker like Elite Wealth.