BackCholamandalam Investment launches QIP, floor price set at ₹1,200.51 per share
Cholamandalam said it may offer a discount of “not more than 5 percent” on the floor price calculated for the issue.
PremiumCholamandalam Investment and Finance Company on September 28 announced the launch of its qualified institutional placement (QIP) issue, at a floor price of ₹1,200.51 per equity share.
The board of directors of the company, in a meeting held today, "approved the floor price for the issue" and “authorised the opening of the issue today, i.e. September 28, 2023", the Murugappa Group-backed NBFC informed the stock exchanges.
Cholamandalam further noted that it may offer a discount of “not more than 5 percent" on the floor price calculated for the QIP issue.
While the total issue size was not unveiled, CNBC TV-18 channel learnt from sources that the company would raise up to ₹2,000 crore via the equity component of the QIP, and another ₹2,000 crore via the issuance of compulsorily convertible debentures (CCDs).
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The CCDs will have a face value of ₹1,00,000 each, Cholamandalam stated in its regulatory filing. “Each CCD will bear interest at the rate of 7.50 percent per annum calculated on the face value of the CCD commencing from the date of Allotment and until the Conversion Date," it added.
“Interest on each CCD shall continue to accrue (on a daily basis) and shall be payable in accordance with the terms hereof until the date on which the CCD is converted into Equity Shares. The interest shall be paid by our company to the CCD holders in half yearly instalments," Cholamandalam further noted.
The QIP issue comes around two months after the NBFC reported a 28 percent on-year rise in standalone net profit to ₹726 crore in the first quarter of FY24. In the year-ago period, the net profit stood at ₹566 crore.
The Chennai-based lender's total income in the April-June period came in at ₹4,134 crore, as against ₹2,771 crore in the corresponding period of the previous year.
In the trading session on September 28, the company's scrip settled at ₹1,219.55 apiece on the BSE, which was 1.77 percent higher as against the previous day's close.
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