Cholamandalam Investment and Finance Company Limited has informed the Exchange regarding allotment of 50200 securities pursuant to Non Convertible Securities at its meeting held on Jun 03, 2025
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Cholamandalam Investment and Finance Company has allotted 50,200 unsecured subordinated non-convertible debentures (NCDs) through a private placement on the NSE Electronic Book Platform. The total amount raised in this tranche is ₹502 crores, as part of a larger issue size of ₹1,000 crores (which includes a ₹500 crore green shoe option). The NCDs carry a coupon rate of 8.57% payable annually, have a 7-year tenure, and will mature on June 3, 2032. The securities are unsecured, subordinated, and listed on the Wholesale Debt Market (WDM) segment of NSE. There are no special rights attached and no defaults in interest or principal payments.
This is a routine debt-raising exercise by Chola to strengthen its capital base for lending operations. The 8.57% coupon reflects current market rates for subordinated NBFC debt; no immediate material impact on equity shareholders, though higher borrowing costs may slightly pressure net interest margins over time.