Cholamandalam investment and Finance Company Limited has successfully obtained regulatory approval from both major Indian stock exchanges for the reclassification of two promoter group entities. The approval marks a significant corporate restructuring move under SEBI's regulatory framework.

Stock Exchange Approvals Granted

The National Stock Exchange of India Limited granted its no-objection through approval letter NSE/LIST/COMP/CHOLAFIN/534/2025-2026 dated January 09, 2026. Similarly, BSE Limited issued its approval via letter LIST/COMP/HG/666/2025-26 on the same date. Both approvals were issued in response to the company's application dated November 10, 2025.

Entities Being Reclassified

The reclassification involves two specific entities transitioning from promoter group status to public category:

Both entities were previously classified as outgoing members of the promoter group and will now be reclassified under the public category as per the stock exchange approvals.

Regulatory Framework and Timeline

The reclassification process follows Regulation 31A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initiated this process through earlier communications dated September 17 & 25, 2025, and November 6 & 10, 2025.

The stock exchanges have mandated that the company ensure compliance with subsequent relevant disclosures of material events related to this reclassification in accordance with the applicable provisions of Regulation 31A of SEBI (LODR) Regulations, 2015.

Corporate Communication

The formal intimation was signed by P. Sujatha, Company Secretary of Cholamandalam Investment and Finance Company Limited, on January 10, 2026. The company has requested stakeholders to take this development on record and has enclosed the approval letters from both stock exchanges for information and records.

Cholamandalam investment and Finance Company has successfully completed the allotment of 76,31,691 equity shares through the conversion of 1,06,300 Compulsorily Convertible Debentures (CCDs). The QIP Committee of the Board of Directors approved this conversion following applications received from six CCD holders during the designated conversion window from January 1 to January 7, 2026.

CCD Conversion Details

The conversion involved 1,06,300 CCDs with a face value of ₹1,00,000 each, totaling ₹1,063 crores in value. These CCDs were originally allotted to eligible qualified institutional buyers on October 5, 2023, carrying a 7.5% coupon rate. The conversion price was set at ₹1,392.88 per equity share, calculated at a 16.50% discount to the seven trading days volume weighted average price of the company's equity shares traded on NSE preceding January 1, 2026.

Impact on Share Capital

The conversion has resulted in a significant increase in the company's share capital structure. The issued capital expanded from 84,47,00,931 shares to 85,23,32,622 shares, while the paid-up capital grew from 84,40,17,161 shares to 85,16,48,852 shares.

Regulatory Compliance and Listing

The company has fulfilled its obligations under Regulation 30 of the SEBI LODR Regulations by informing both NSE and BSE about this conversion. The newly allotted equity shares carry a face value of ₹2.00 each and rank pari-passu with existing equity shares in all respects, including dividends and voting rights. These shares will be listed on both BSE Limited and National Stock Exchange of India Limited.

Original CCD Issuance Background

The CCDs were initially issued in October 2023 as part of a qualified institutional placement, with 2,00,000 CCDs allotted at an issue price of ₹1,00,000 each. The placement document included an early conversion option available on or after September 30, 2025, which enabled the recent conversion activity during the January 2026 window.

This conversion represents a strategic capital restructuring move, providing the CCD holders with equity participation while strengthening the company's equity base. The successful completion of this conversion demonstrates investor confidence in the company's growth prospects and financial stability.