Cholamandalam Investment and Finance Company has received approval from its board to raise Rs 500 crore. The entire Compulsorily Convertible Preference Shares (CCPS) issue will be subscribed by Dynasty Acquisition (FDI), a company backed by funds advised by Apax Partners.
The company will raise the money by issuing 50,000,000 Compulsorily Convertible Preference Shares (CCPS) of Rs 100 each aggregating to Rs 500 crore on a preferential basis as permitted by SEBI (ICDR) Regulations to investors as a preferential issue in terms of Chapter VII of the SEBI (ICDR) Regulations.
This capital infusion will help the Company to meet the business growth and augment the Tier 1 capital adequacy ratio (CAR).
Cholamandalam Investment is among the top 5 NBFC’s in the country operating in vehicle finance, home equity, corporate and mortgage finance segments with subsidiaries in the broking and wealth advisory space. It is emerging as a high growth company in the retail lending space with a branch network of over 220.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 955.05 |
| Shriram Finance | 1007.95 |
| Aditya Birla Capital | 363.05 |
| Chola Invest & Fin. | 1676.05 |
| Tata Capital | 321.70 |
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