Cholamandalam Investment and Finance Company Limited (CIFCL) has announced its maiden public issue of secured, rated, listed redeemable non-convertible debentures of the face value of Rs. 1,000 each (“NCDs”) with a base Issue size of Rs. 500 crores with an option to retain any oversubscription up to Rs 500 crores, aggregating up to Rs. 1,000 crores, which is within the shelf limit of Rs 5000 crore (“Tranche I Issue”). The Tranche I Issue opens on Tuesday, April 25, 2023 and closes on Tuesday, May 9, 2023with an option of early closure in compliance with SEBI NCS Regulations.
The NCDs are proposed to be listed on BSE and NSE (“NSE” together with BSE, the “Stock Exchanges”) NSE shall be the Designated Stock Exchange for the Tranche I Issue. The NCDs have been rated “IND AA+/Stable” by India Ratings & Research Private Limited and “[ICRA]AA+ (Stable)” by ICRA Limited.
The Tranche I Issue offers various series of NCDs for subscription with coupon rates ranging from 8.25% per annum to 8.40% per annum The minimum application size would be ₹ 10,000 (i.e., 10 NCDs) and thereafter in multiples of ₹ 1,000 (i.e. 1 NCD) thereof. The NCDs under the Tranche I Issue are being offered with maturity/ tenor options of 22 months, 37 months and 60 months with annual and cumulative payments options across series I, II, III, IV, V and VI. Effective yield (per annum) for the NCD holders in all categories of Investors ranges from 8.25% per annum to 8.40% per annum. Interest payment modes for the NCDs is through various modes selected by the investors. Amount on Redemption on maturity for the NCD holders in all Categories of Investors under the cumulative coupon payment option ranges from ₹ 1,156.64to ₹ 1,497.40 per NCD across various tenures.