Chennai-based non-banking financial company (NBFC) Cholamandalam Investment and Finance Co. Ltd on Thursday said its board has approved the issuance of equity shares worth ₹1,000 crore through qualified institutional placement (QIP), in one or more tranches.
Founded in 1978, Cholamandalam Investment’s core business comprises commercial vehicle finance and loan against properties. Besides, the company also offers home loans, small and medium-sized enterprise (SME) loans, investment advisory services, stock broking and a variety of other financial services. Nearly half of its clients are in low-income states and 80% are first-time buyers or drivers-turned-owners. As on 30 September, the Murugappa Group-owned financial services company operated 1,029 branches across 27 states in India and managed assets worth ₹59,292 crore.
The board also approved an interim dividend of ₹1 per share, equal to 50% of the face value of its shares, on the outstanding equity shares, for the year ending 31 March 2020.
In May, International Finance Corp., the investment arm of the World Bank, had led a $222 million debt investment round in Chola, marking its third investment in the non-bank lender. While IFC invested $92 million, the remaining was syndicated from UAE’s First Abu Dhabi Bank ($50 million); National Bank of Ras Al-Khaimah PJSC ($20 million); Japan’s MUFG Bank Ltd ($50 million); and Taiwan’s CTBC Bank Co. Ltd ($10 million).
Source: Mint