| Issuer | Cholamandalam Investment and Finance Company Limited |
| Type of Instrument | Secured Rated Listed Redeemable Non-Convertible Debentures |
| Rating | IND AA+/Stable by India Ratings & Research Private Limited and [ICRA] AA+/Stable by ICRA Limited |
| Issue Size | Base Issue Rs.500 crores + Green Shoe Rs.500 crores. Total = Rs.1000 crores |
| Face Value | Rs. 1000 per NCD |
| Seniority | Senior |
| Coupon | Refer table below |
| Tenor | Refer table below |
| Trustee | IDBI Trusteeship Services Limited |
| Registrar | KFIN Technologies Limited |
| Minimum Investment | Rs. 10,000/- |
| Allotment | First Come First Serve Basis |
| Issue Opening Date | April 25, 2023 |
| Issue Closing Date | May 09, 2023 |
| Series | I | II | III* | IV | V | VI | |
| Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative | Annual | Cumulative | |
| 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% | |
| Redemption Amount (Rs. / 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 | ||||||
| *The Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series. | |||||||
| At least 75% For the purpose of onward lending, financing and for repayment of interest and principal of existing borrowings of the Company. |
| Maximum up to 25% for general corporate purposes. |
| Institutional Portion | Non-Institutional Portion | High Net Worth Individual Investors Portion | Retail Individual Investors Portion |
| 20% | 25% | 25% | 30% |
| AUM (in crores) | Rs 60,549.26 | Rs 69,996.38 | Rs 76,907 |
| Year | 2020 | 2021 | 2022 |
As of for the nine months ended December 31, 2022 its AUM was at Rs 95,467.66 crore.
The Company’s asset quality as at December 31, 2022, represented by Stage 3 assets stood at 3.51% with a Provision Coverage Ratio of 41.96%. The CRAR of the Company as on December 31, 2022, was at 17.75% as against the regulatory requirement of 15%.
Cholamandalam Investment and Finance Company Limited (“CIFCL” / “the Company”) is a non-banking finance company, incorporated in 1978 as the financial services arm of the Murugappa group, which has more than 122 years of existence. The Company is categorized as an NBFC-ICC.
CIFCL has commenced business as an equipment financing company and has since expanded its operations to offer vehicle finance, loan against property, home loans, loans to small and medium-sized enterprises (“SMEs”), consumer and small enterprise loans, and secured business and personal loans.
As of December 31, 2022, the company had 22.70 lakh active customers and 1,166 branches across 29 States and Union Territories in India. The company has been able to leverage its knowledge and experience in the vehicle finance industry coupled with its relationships with OEMs and dealers to grow its operations and expand its operating network. The company’s focus on technology and the use of data analytics has allowed for driving and digitizing its operations, improving efficiency, and reducing manpower and turnaround time.
The company believes that its track record of financial performance across the businesses, prudent risk management practices, and strong credit ratings are key factors that have resulted in its growth over the years. In addition, being a part of the Murugappa group the company is able to derive significant synergies by leveraging their brand and existing customer base. The company, over the years has been recognized for its products and excellence in operations by numerous awards including “Rising Star of the Year 2018 – 2019” at the India CX Awards, three time winner of the “Commercial Vehicle Financier of the Year” at the Mahindra Transport Excellence Awards in 2015, 2016 and 2018, CII Industrial Innovation Awards 2017 for “Top 26 Most Innovative Company” and “Best Corporate in Medium Category” in the 2nd ICSI CSR Excellence Awards in 2017.
Disclaimer: Investments in debt securities/ municipal debt securities/ securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully.
