Company confirms allotment of 50200 listed redeemable rated unsecured subordinated ncds on 3rd June 2025
Awaiting price reaction for this filing.
Cholamandalam Investment and Finance has allotted 50,200 unsecured, subordinated, listed non-convertible debentures (NCDs) on 3rd June 2025, raising Rs 502 crore through private placement on the NSE Electronic Book Platform. The total issue size is Rs 1,000 crore, including a Rs 500 crore green shoe option still available. The NCDs carry a coupon of 8.57% per annum, payable annually, with a 7-year tenure maturing on 3rd June 2032. The securities are listed on the WDM (Wholesale Debt Market) segment of NSE.
This is a debt raise (not equity), so there is no dilution for shareholders. The 8.57% coupon reflects prevailing borrowing rates for a subordinated NBFC issuer and will strengthen the company's Tier-2 capital base. Neutral-to-slightly-positive for the stock, as it supports lending growth without impacting equity.