Cholamandalam Investment and Finance Company Limited has completed the allotment of secured non-convertible securities worth ₹1,001 crores through private placement. The securities come with an 8.20% coupon rate and a maturity period of 2.15 years.

Securities Allotment Details

The company has provided comprehensive details regarding the securities allotment under Regulation 30 and 30(A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The following table summarizes the key parameters of the allotted securities:

Interest Rate and Maturity Structure

The securities offer attractive returns with a structured payment schedule designed for institutional investors. The interest rate framework and maturity details are outlined below:

Regulatory Compliance and Risk Factors

The company has confirmed full compliance with listing regulations and provided necessary disclosures regarding the securities. Key regulatory aspects include:

• No delays in payment of interest or principal amount for more than three months from due dates
• No defaults in payment of interest or principal amounts reported
• No adverse letters or comments regarding payment obligations
• Securities do not involve preference share redemption or debenture-related complications

Issue Structure and Market Positioning

The allotment of ₹1,001 crores represents a substantial portion of the total issue size of ₹1,500 crores, which includes a greenshoe option of ₹500 crores. The securities are structured as secured instruments, providing additional safety to investors through asset backing. The listing in the WDM (Wholesale Debt Market) segment of NSE ensures appropriate market access for institutional participants.

The successful completion of this securities allotment demonstrates Cholamandalam Investment's continued access to capital markets and its ability to raise funds through debt instruments at competitive rates in the current market environment.

Cholamandalam Investment and Finance Company Limited has issued a detailed clarification under Regulation 30 of SEBI Listing Regulations, categorically denying all allegations made against the company and its associates. The financial services firm has described the charges as malicious and baseless, stating they are driven by ulterior motives.

Strong Financial Position Reaffirmed

The company has reassured investors about its robust financial health and performance metrics. Key financial indicators demonstrate the company's strong position in the market.

The company maintains strong credit ratings of AA from ICRA, India Ratings and CARE. The Asset Liability Management (ALM) across time buckets remains positive, indicating healthy liquidity management.

Response to Specific Allegations

Cholamandalam Investment has provided detailed clarifications on various allegations raised in blogs and posts by certain agencies. The company has addressed concerns about its financial practices, related party transactions, and compliance matters.

Cash Collection Practices

The company explained its large cash deposits stem from serving over 50 lakh customers across 1,700 branches, primarily small road transport operators and self-employed non-professionals in rural and semi-urban areas. These borrowers typically earn and pay in cash, including EMIs, which are then deposited in banks following proper KYC and income tax compliance.

Related Party Transactions

All related party transactions are disclosed in full compliance with legal and accounting requirements in the financial statements. The company cited examples including insurance premium collections for borrower policies paid to subsidiary Cholamandalam MS General Insurance Company Limited, and payments for manpower, strategic services, and IT requirements to related entities.

Capital Structure Enhancement

The company's net worth increase includes the conversion of ₹300 crores of Compulsorily Convertible Debentures (CCDs) issued in FY24. An additional ₹1,700 crores of CCDs is expected to be converted in the next three quarters, further strengthening the company's capital base.

Cholamandalam Investment has committed to transparent communication with investors and stakeholders while reserving the right to take action against agencies causing damage to its reputation and integrity. The company maintains that all operations are conducted in compliance with applicable laws and regulatory guidelines.