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 held a comprehensive investor call on December 23, 2025, to address governance allegations made by an external agency. Executive Chairman Vellayan Subbiah, Managing Director Ravindra Kundu, and CFO Arul Selvan provided detailed clarifications on various concerns raised, reaffirming the company's strong financial position and compliance practices.

Management Calls Allegations Malicious and Baseless

Vellayan Subbiah opened the call by categorically rejecting the allegations as "malicious and baseless" with "ulterior motives." He emphasized that the company's performance, asset quality, and liquidity position remain robust as disclosed in audited financial statements. The management confirmed there has been no revision to earlier guidance and the company will continue delivering as per its board-approved business plan.

Cash Collection Practices Defended

Addressing allegations about large cash deposits, management explained that over 50 lakh customers across 1,700 branches include Self-Employed Non-Professionals (SENPs) who earn and pay in cash. "Some of these borrowers obviously earn and pay in cash, including for their EMIs from us. The amounts we collect in cash have to be deposited in banks," Vellayan Subbiah clarified. Cash collections have reduced significantly from 50% earlier to just 15% currently, with all KYC and income tax compliance done as per legal requirements.

Related Party Transactions Clarified

Management provided comprehensive explanations for related party transactions, particularly addressing the ₹10,000.00 crore figure cited by the agency. Arul Selvan explained this represents accumulated data over eight years (2017-2025), during which regulatory requirements for related party disclosures evolved.

"At every point, the company ensured compliance with the law prevailing then. Applying current disclosure norms retrospectively is completely incorrect," Arul Selvan emphasized.

Murugappa Management Services Structure Explained

Regarding payments to Murugappa Management Services (MMS), Vellayan Subbiah clarified that MMS was incorporated to provide consulting services to all 29 Murugappa Group businesses. The entity centralized functions like business plan reviews, M&A activities, corporate communication, HR, and governance across the group.

Rating Agency Fees Within Industry Norms

Management provided specific details on rating agency payments, demonstrating they are well within industry standards:

This represents just 0.01% of total borrowings, which management noted is "slightly lower than industry" standards.

Strong Operational Performance Continues

Despite the allegations, the company's operational metrics remain strong. Ravindra Kundu indicated that Q3 FY25 would be a "turnaround quarter" with improved disbursements in vehicle finance and home loans. The management expects better numbers compared to the first half, with traditional seasonal improvements in delinquency during Q3 and Q4.

Management concluded by reserving the right to take legal action against the agency for damaging the company's reputation and interests, while reaffirming their commitment to transparent communication with investors and stakeholders.