Cholamandalam investment and Finance Company Limited has successfully completed the allotment of Unsecured Subordinated Non-Convertible Securities worth ₹1000 crores, marking a significant milestone in the company's fundraising activities. The securities were issued through private placement on the NSE Electronic Book Platform (EBP), demonstrating the company's access to institutional capital markets.

Securities Allotment Details

The company has provided comprehensive details of the securities allotment in compliance with SEBI regulations. The allotment encompasses 100000 securities with a total value of ₹1000 crores, representing a substantial capital raising exercise for the financial services company.

Terms and Structure

The securities carry attractive terms for investors with a tenure of 7 years and a competitive coupon rate of 8.66% per annum. The annual coupon payment structure provides predictable returns for investors, with payments scheduled for February 23rd each year.

Listing and Market Access

The securities have been successfully listed on the Wholesale Debt Market (WDM) segment of the National Stock Exchange (NSE), providing liquidity options for institutional investors. The listing on NSE's WDM segment ensures transparency and regulatory oversight for the debt instruments.

Regulatory Compliance

The allotment has been completed in full compliance with Regulation 30 and 30(A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that there are no defaults in payment of interest or principal amounts, and no special rights or privileges are attached to these securities. The unsecured nature of the securities reflects the company's strong credit profile and investor confidence in its financial stability.

Cholamandalam Investment and Finance Company Limited has released the transcript of its earnings call for Q3FY26, held on February 2, 2026. The company informed stock exchanges about the availability of the transcript through a regulatory filing dated February 9, 2026, under Regulation 30.

Q3FY26 Financial Performance

The company reported strong financial performance during the third quarter, with Executive Chairman Vellayan Subbiah highlighting key metrics during the earnings call:

Segment-wise Growth Momentum

The company witnessed robust growth across multiple business segments during Q3FY26. Vehicle finance delivered 17% year-on-year increase in disbursements, supported by broad-based industry momentum across commercial vehicles, passenger vehicles, and two-wheelers in both new and used categories.

The mortgage and lending segments showed particularly strong performance:

New Business Initiatives

The company's newly introduced gold loan business disbursed ₹772 crores during Q3FY26, operating through 118 dedicated branches in South and Eastern India. The unsecured segment registered 32% growth over Q2FY26, though year-on-year growth remained negative due to withdrawal from fintech-based lending.

Financial Position and Capital Adequacy

Cholamandalam Investment maintained strong liquidity with total liquid assets of ₹18,857 crores, including undrawn sanction lines. The company's capital adequacy position stood at 19.16% in December 2025, with Tier 1 capital at 14.12%.

Management Outlook

During the earnings call, Managing Director and CEO Ravindra Kundu indicated that credit costs in vehicle finance have stabilized, with expectations of reasonable moderation in Q4. The company anticipates Q4 to reflect improved performance in line with past trends, supported by sustained housing demand and healthy traction in mortgage-backed lending.

The Board approved payment of an interim dividend of 65%, equivalent to ₹1.30 per share, reflecting the company's commitment to shareholder returns despite ongoing business investments.