Cholamandalam Investment and Finance may launch Rs 2,000 crore QIP today: Exclusive
Along with the QIP, the company is also exploring options to issue Compulsorily Convertible Debentures (CCDs) worth Rs 2,000 crore, according to the sources.
Cholamandalam Investment and Finance ltd., the Non-bank lender of the Murugappa Group is likely to launch a qualified institutional placement as early as today, people with knowledge of the matter told CNBC-TV18.
The company aims to raise Rs 2,000 crore through the QIP with an option to upsize, sources said.
Floor price of the QIP is likely to range between Rs 1,160 - Rs 1,180 per share, which is a discount of 4-6 percent from the current market price but nearly the same as its 15-day average price.
The source further said that the proposed QIP is getting strong demand, which has now surged to as high as 10 times the base size of Rs 2,000 crore.
Cholamandalam's QIP is one part of the total fund raising approval of Rs 4,000 crore that the board had approved on August 1 this year.
Along with the QIP, the company is also exploring options to issue Compulsorily Convertible Debentures (CCDs) worth Rs 2,000 crore, according to the sources.
The company is yet to respond to CNBC-TV18's queries regarding the proposed QIP.
Cholamandalam Finance had last raised Rs 1,200 crore during the March quarter of financial year 2020. This was done through a mix of a QIP, through which it raised Rs 900 crore and a preferential issue of Rs 300 crore. Back then, the company had issued shares at a price of Rs 320 apiece in the QIP to investors like the Government of Singapore, among others.
For the June quarter, Cholamandalam Investment Finance saw its Net Interest Income rise by 47 percent year-on-year, while its net profit had risen by 28 percent compared to the same period last year.
Shares of Cholamandalam Investment and Finance have risen 70 percent so far in 2023 and are trading at a record high. The stock's low this year was on January 6, when it fell to Rs 658. This is the best annual performance for the stock so far since 2014, during which the stock had risen 93 percent.
Shares of Cholamandalam Investment and Finance are trading 2.4 percent higher at Rs 1,226.75.
(Edited by : Hormaz Fatakia)
First Published: Sept 28, 2023 1:40 PM IST
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