Chola Investment issues ₹2,000 cr perpetual NCDs at 8.97% coupon
- Cholamandalam Investment allotted ₹2,000 crore in unsecured perpetual NCDs
- The issue carries a fixed coupon rate of 8.97%, payable annually
- Securities are listed on the NSE Wholesale Debt Market segment
- The instruments have a call option exercisable on September 2, 2036
- No defaults or payment delays were reported for the issue
*this image is generated using AI for illustrative purposes only.
Cholamandalam Investment & Finance Company Ltd has allotted ₹2,000 crore worth of unsecured perpetual non-convertible securities (NCDs) through a private placement. The issuance was completed on September 1, 2026, with the instruments listed in the Wholesale Debt Market segment of the National Stock Exchange.
The company confirmed the allotment via a compliance certificate submitted to the Bombay Stock Exchange under Regulation 30 and 30(A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The securities are unsecured and carry no special rights or privileges for investors.
Issue Details
The private placement involved the issuance of 2,000 securities, each with a face value that aggregates to the total size of ₹2,000 crore. The issue did not include a green shoe option. Key terms of the instrument are outlined below:
| Metric | Details |
|---|---|
| Security Type | Unsecured Perpetual Non-Convertible Securities |
| Coupon Rate | 8.97% |
| Tenure | Perpetual with call option on September 2, 2036 |
| Listing | NSE Wholesale Debt Market |
| Payment Frequency | Annual (September 1) |
Terms and Conditions
The NCDs carry a fixed coupon rate of 8.97%, payable annually on September 1 of each year. The final payment is due on the call option date of September 2, 2036. As perpetual instruments, these securities have no fixed maturity date but allow the issuer to redeem them at the specified call date.
Cholamandalam Investment reported no delays in interest or principal payments for this issue. There were no defaults recorded, nor were there any regulatory comments regarding payment obligations. The company also confirmed that no redemption of preference shares or debentures was linked to this specific transaction.
What the Numbers Show
The decision to raise ₹2,000 crore through perpetual debt at an 8.97% coupon reflects the company’s strategy to secure long-term funding without immediate repayment pressure. Perpetual instruments often carry higher coupons than term debt to compensate investors for the lack of maturity certainty. The absence of security backing implies the cost of capital is driven by the issuer’s credit profile rather than collateral value.
Historical Stock Returns for Cholamandalam Investment
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.30% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
How will the 8.97% coupon rate on these perpetual NCDs impact Cholamandalam's overall cost of capital compared to its existing term debt portfolio?
What specific growth initiatives or asset acquisitions is Cholamandalam likely funding with this ₹2,000 crore long-term capital raise?
Given the unsecured nature of the instruments, how might this issuance influence credit rating agencies' outlook on the company's leverage and solvency ratios?
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