Cholamandalam Investment and Finance Company Ltd to raise funds through NCDs

The Board of Directors of Cholamandalam Investment and Finance Company Ltd at its meeting held on January 29, 2016, has approved the Issue of Non-convertible Debentures. The Board approved the issue of 60,000 secured Redeemable, Non-Convertible Debentures of a face value of Rs. 10 lakhs each at par aggregating to Rs. 6,000 crores in one or more tranches on private placement basis.

The Board approved the issue of 6,000 unsecured Redeemable, Non-Convertible Debentures in the nature of subordinated debt of a face value of Rs. 10 lakhs each at par aggregating to Rs. 600 crores in one or more series on private placement basis and issue of 1,000 unsecured Redeemable, Non-Convertible Debentures in the nature of perpetual debt of a face value of Rs. 10 lacs each at par aggregating to Rs. 100 crores in one or more series on private placement basis.

The Board also approved the proposal to invest in M/s. Cholamandalam Distribution Services Limited (CDSL). A proposal to invest up to a sum not exceeding Rs. 75 crores in equity shares of Cholamandalam Distribution Services Limited (CDSL), a 100% subsidiary of the Company in one or more tranches as a long term investment. With this investment, the total investment by the Company in CDSL will be at Rs. 117.40 crores. The capital infusion is consequent to CDSL obtaining an 'in-principle' approval for Payments Bank license from RBI. As per RBI guidelines and the terms and conditions of 'in-principle' approval for conversion into a payments bank, CDSL shall maintain a minimum net worth of Rs.100 crores at all times.

The Board also gave update on the proposal to invest in M/s. White Data Systems India Private Limited (White Data). Further to the earlier letter dated December 23, 2015 intimating about the approval of the Board to invest Rs. 8 crores in White Data, the Company inform that the Company has closed its negotiations with White Data and its Promoters and the said sum will be invested in acquiring 63% equity stake resulting in an investment of 12,75,917 equity shares at a price of Rs. 62.70 per share.

Shares of Cholamandalam Investment and Finance Company Ltd was last trading in BSE at Rs.652.7 as compared to the previous close of Rs. 635.25. The total number of shares traded during the day was 4926 in over 289 trades.

The stock hit an intraday high of Rs. 663.2 and intraday low of 640. The net turnover during the day was Rs. 3188719.

Source : Equity Bulls

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