Cholamandalam Finance
to raise up to Rs 5,000 cr. via NCDs, launches Maiden Tranche I Issue of up to
Rs 1,000 cr., Tranche I Issue OpensApril 25, 2023
Coupon Rate
Upto 8.40% p.a.#Effective Yield
Up to 8.40% p.a.##
·
Maiden
public issue of secured, rated, listed, redeemable non-convertible debentures
(“NCDs”) of face value and Issue price of ₹ 1,000 each
·
The
Tranche I Issue includes a base Issue size of ₹ 500 crores with an option to
retain oversubscription up to ₹ 500 crores aggregating up to ₹ 1,000 crores;
within a shelf limit of ₹ 5,000 crore
·
NCDs
proposed to be issued pursuant to the Tranche I Issue are rated as “IND
AA+/Stable” by India Ratings & Research Private Limited and “[ICRA]AA+
(Stable)” by ICRA Limited
·
Tenor
options: 22 months, 37 months & 60 months with annual and cumulative coupon
payment options
·
Coupon
rate up to 8.40% p.a.# and Effective Yield up to 8.40% p.a.##
·
The
Tranche I Issue opens on Tuesday, April 25, 2023 and closes on Tuesday, May 9,
2023**
·
Allotment
on first-come-first-serve basis.
·
The
NCDs are proposed to be listed on BSE Limited (“BSE”) and National Stock
Exchange of India Limited (“NSE”). NSE Limited is the designated stock
exchange for the Tranche I Issue.
#For
Series V ## For
Series VI
**This
Tranche I Issue shall remain open for subscription on Working Days from 10 a.m.
to 5 p.m.(Indian Standard Time) during the period indicated in the Tranche I
Prospectus, except that the Tranche I Issue may close on such earlier date or
extendeddate as may be decided by the Board of Directors of our Company or
Debenture Committee subject to compliance with Regulation 33A of the SEBI NCS
Regulations. In the event of an early closure or extension of the Tranche I
Issue, our Company shallensure that notice of the same is provided to the
prospective investors through an advertisement in all the newspapers in which
pre-issue advertisement for opening of the Tranche I Issue have been given on
or before such earlier or initial date of TrancheI Issue closure. Application
Forms for the Tranche I Issue will be accepted only from 10:00 a.m. to 5:00
p.m. or such extended time as may be permitted by the Stock Exchanges, on
Working Days during the Tranche I Issue Period. On the Tranche IIssue Closing
Date, the Application Forms will be accepted only between 10 a.m. and 3 p.m.
(Indian Standard Time) and uploaded until 5 p.m. or such extended time as may
be permitted by the Stock Exchanges. Further, pending mandate requests forbids
placed on the last day of bidding will be validated by 5 p.m. (Indian Standard
Time) on one Working Day after the Tranche I Issue Closing Date. For further
details please refer to the chapter titled “Issue Related Information” on page
36 of the Tranche I Prospectus.
Mumbai, April 20, 2023: Cholamandalam
Investment and Finance Company Limited (CIFCL), a leading financial services
provider in India, has announced itsmaiden public issue of
secured, rated, listed redeemable non-convertible debentures of the face value
of Rs. 1,000 each (“NCDs”)with a base Issue size
of Rs. 500 crores with an option to retain any oversubscription up to Rs 500
crores, aggregating up to Rs. 1,000 crores, which is within the shelf limit of Rs 5000 crore (“Tranche I Issue”). The Tranche I Issue opens on Tuesday, April 25, 2023 and closes on Tuesday,
May 9, 2023 with an option of early closure in compliance with SEBI NCS
Regulations.
The NCDs are
proposed to be listed on BSE and NSE (“NSE” together with BSE, the “Stock
Exchanges”) NSE shall be the Designated Stock Exchange for the Tranche I
Issue. The NCDs have been rated “IND
AA+/Stable” by India Ratings& Research
Private Limited and “[ICRA]AA+
(Stable)” by ICRA Limited.
The Tranche I
Issue offers various series of NCDs for subscription with coupon rates ranging
from 8.25% per annum to 8.40% per annumThe minimum application size would be ₹ 10,000 (i.e., 10 NCDs) and thereafter in multiples of ₹ 1,000 (i.e. 1 NCD) thereof. The NCDs under the Tranche I Issueare being offered with
maturity/ tenor options of 22 months, 37 months and 60
months with annual and cumulative payments options across series I, II, III, IV, V and VI. Effective yield (per annum) for the NCD holders in all categories of
Investors ranges from 8.25% per annum to 8.40% per annum. Interest payment modesfor
the NCDs is through various modes selected by the investors. Amount on
Redemption on maturity for the NCD holders in all Categories of Investors under
the cumulative coupon payment option ranges from ₹ 1,156.64to ₹ 1,497.40 per
NCD across various tenures.
As of December
31,2022 the company had 22.70 Lakh Active Customers across India being served
by 1,166 branches across 29 states and union territories in India. It has a
geographically diversified exposure across North, South, East and West regions,
80% of its branches are located in Tier III, Tier IV, Tier V and Tier VI towns
Its principal
businesses include vehicle finance, loan against property and home loans,
additionally it also provides financing to SMEs, Consumer and Small
Enterprises. Recently it has forayed into providing secured business and
personal loans. CIFCL’s Total AUM as on Dec 31, 2022 stood at Rs 95,467 crs.
Out of the
Net proceeds of the Tranche I Issue, after meeting the
expenditures of and related to the Tranche I Issue, at least 75% shall be
utilised for the purpose of onward lending, financing, and for repayment of
interest and principal of existing borrowings of the Company and up to 25% for
general corporate purposes.
The terms of each series ofNCDs offered under the Tranche I Issue are set out below:
|
Series
|
I
|
II
|
III*
|
IV
|
V
|
VI
|
|
Frequency
of Interest Payment
|
Annual
|
Cumulative
|
Annual
|
Cumulative
|
Annual
|
Cumulative
|
|
Minimum
Application
|
₹ 10,000 (10 NCDs) across all Series
|
|
In
Multiples of thereafter (₹)
|
₹ 1,000 (1 NCD)
|
|
Face
Value/ Issue Price of NCDs (₹/ NCD)
|
₹ 1,000
|
|
Tenor
|
22 months
|
22 months
|
37 months
|
37 months
|
60 months
|
60 months
|
|
Coupon
(% per annum) for NCD Holders in all Categories of Investors
|
8.25%
|
NA
|
8.30%
|
NA
|
8.40%
|
NA
|
|
Effective
Yield (% per annum) for NCD Holders in all Categories of Investors
|
8.26%
|
8.25%
|
8.30%
|
8.30%
|
8.39%
|
8.40%
|
|
Mode of Interest
Payment
|
Through various modes available
|
|
Series
|
I
|
II
|
III*
|
IV
|
V
|
VI
|
|
Redemption
Amount (₹ / NCD) on Maturity for NCD Holders in all Categories of Investors
|
₹ 1,000
|
₹ 1,156.64
|
₹ 1,000
|
₹ 1,279.15
|
₹ 1,000
|
₹ 1,497.40
|
|
Maturity
/ Redemption Date (from the Deemed Date of Allotment)
|
22 Months
|
22 Months
|
37 Months
|
37 Months
|
60 Months
|
60 Months
|
|
Put and
Call Option
|
Not Applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated the
choice of the relevant NCD Series.
A.K.Capital Services Limited is the Sole Lead Manager tothe Issue. IDBI Trusteeship
Services Limited is the Debenture Trustee to the Issue and KFin Technologies
Limited is the Registrar to the Tranche I Issue.
Please note that the
Basis of Allotment under the Issue will be on the basis of date of upload of
each application into the electronic book of the Stock Exchanges in accordance
with the SEBI Operational Circular. However, from the date of oversubscription
and thereafter, the allotments will be made to the applicants on proportionate
basis. For further details refer section titled “Issue Procedure” on page 55 of
the Tranche I Prospectus dated April 19, 2023.
