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Business News/ Markets / Stock Markets/  Cholamandalam Investment and Finance to raise 4,000 crore via QIP in September: Report
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Cholamandalam Investment and Finance to raise ₹4,000 crore via QIP in September: Report

The Murugappa-backed company has shortlisted three investment banks as advisors for the QIP, according to a report by Moneycontrol.

Cholanadalam Investment is likely to raise ₹4,000 crore via QIP. (Photo: iStock)Premium
Cholanadalam Investment is likely to raise 4,000 crore via QIP. (Photo: iStock)

Cholamandalam Investment and Finance Co is likely to raise upto 4,000 crore through a qualified institutional placement (QIP)  in September. The Murugappa-backed company has shortlisted three investment banks as advisors for the same, according to a report by Moneycontrol. The NBFC arm of the conglomerate looks to raise the amount for growth purposes, sources told the news website.

The proposed QIP is likely to be launched in September depending upon the market conditions. Investment banks Kotak Mahindra Capital, IIFL Capital and HSBC Securities have been taken on board and work has begun, according to the report.

Live Mint could not independently verify the development.

Cholamandalam Finance has earlier raised 1,200 crore, including 900 crore through QIP and 300 crore through a preferential issue to the parent, during the last quarter of fiscal 2019-20.

The Chennai-based lender recently announced its April-June quarter results for fiscal 2023-24 (Q1FY24) and reported a rise of 28 per cent in standalone net profit of 726 crore, compared to 566 crore in the corresponding period last year.

The total income in the first quarter of the current fiscal rose to 4,134 crore, compared to 2,771 crore in the year-ago period, said the NBFC in a regulatory filing to the stock exchanges. The lender's interest income also increased to 3,849 crore in the June quarter, compared to 2,612 crore in the same quarter a year ago. 

On the asset quality side, the bank saw an improvement with the gross non-performing assets (NPAs) easing to 4.30 per cent of the gross advances by June 2023 from 6.31 per cent a year ago. The net NPA too declined to 2.82 per cent against 4.43 per cent in the year-ago period.

The firm's board has cleared the proposal for issue of secured or unsecured redeemable non-convertible debentures aggregating to 38,000 crore in one or more tranches on private placement basis.

On August 4, shares of Cholamandalam Investment and Finance settled 1.49 per cent higher at 1,084.60 apiece on the BSE.

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Published: 05 Aug 2023, 03:58 PM IST
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