Cholamandalam Finance Raises ₹2000 Crore Debt at 7.94% Coupon

BANKINGFINANCE
Whalesbook Corporate News Logo
AuthorRiya Kapoor|Published at:
Cholamandalam Finance Raises ₹2000 Crore Debt at 7.94% Coupon
Overview

Cholamandalam Investment and Finance Company Limited has raised ₹2000 crore by issuing Secured Non-Convertible Securities (NCDs) through a private placement. These 3-year NCDs, listed on NSE, offer a 7.94% coupon. The funds will strengthen the company's capital structure and liquidity to support growth.

Instant Stock Alerts on WhatsApp

Used by 10,000+ active investors

1

Add Stocks

Select the stocks you want to track in real time.

2

Get Alerts on WhatsApp

Receive instant updates directly to WhatsApp.

  • ✓Quarterly Results
  • ✓Concall Announcements
  • ✓New Orders & Big Deals
  • ✓Capex Announcements
  • ✓Bulk Deals
  • ✦And much more
Add StocksGet it on Google PlayDownload on the App Store

Cholamandalam Finance Raises ₹2000 Crore Debt at 7.94% Coupon

Cholamandalam Investment and Finance Company Limited has successfully raised ₹2000 crore by issuing Secured Non-Convertible Securities (NCDs) through a private placement. These securities carry a coupon rate of 7.94% and mature in three years.

Funding Details

The private placement involved the issuance of 2,00,000 Secured NCDs. The fundraising successfully garnered ₹2000 crore, which included a ₹1000 crore green shoe option. The NCDs mature on March 20, 2029, and are listed on the NSE WDM Segment.

Impact on Company

This significant debt issuance enhances Cholamandalam Finance's liquidity and strengthens its overall capital structure. These funds will provide the necessary resources to support its ongoing growth initiatives and manage its expanding loan book.

Company Background

Cholamandalam Investment and Finance Company Limited, part of the Murugappa Group, is a prominent player in India's Non-Banking Financial Company (NBFC) sector. It offers a broad range of financial services and has a track record of accessing capital markets to fund its expansion and growth in Assets Under Management (AUM).

Potential Risks

The company's filing did not detail specific risks associated with this issuance.

Market Context

Other major NBFCs, such as Bajaj Finance and LIC Housing Finance, also frequently access debt markets. These companies generally issue NCDs with coupon rates reflecting current market interest rates and their credit ratings. Cholamandalam Finance's 7.94% rate for its 3-year NCDs is competitive within the current market for entities with similar credit profiles.

Key Financials

As of FY25 (Consolidated):

  • Capital Adequacy Ratio: 20.18%
  • Assets Under Management (AUM): ₹1,24,376.00 crore
  • Total Debt: ₹43,034.60 crore

Looking Ahead

Investors will likely monitor Cholamandalam Finance's future debt issuance plans, its continued growth in AUM and profitability, and management commentary on its funding strategy and capital adequacy in upcoming earnings calls.

Get stock alerts instantly on WhatsApp

Quarterly results, bulk deals, concall updates and major announcements delivered in real time.

Add Stocks
Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.