Cholamandalam DBS plans to raise Rs300 cr

Cholamandalam DBS plans to raise Rs300 cr

Mumbai: Cholamandalam DBS said on Friday its founders including EID Parry, Coromandel Fertiliser Ltd. and DBS Bank would subscribe to 10 million convertible shares, to raise Rs300 crore.

The preference shares will carry a face value of Rs100 each, with a premium of Rs200 and shall be convertible into equity within 18 months, it said in a statement to the stock exchange.

Cholamandalam is a joint venture between India’s diversified Murugappa group and Singapore DBS Group.

The firm, on 24 October, had approved raising Rs500 crore “to improve the liquidity position of the company and strengthen the capital adequacy ratio," it said.

For a non-banking financial company, the current regulatory capital adequacy ratio prescribed is 10% and has been increased by the RBI to 12% by March 2009 and 15% by March 2010, the company said.

Shares were up 8.6% at Rs40.45 in relatively low volumes in a firm Mumbai market.