Cholamandalam Investment and Finance Company Limited (CIFCL) has opened its maiden public issue of “secured, rated, listed redeemable non-convertible debentures” of the face value of Rs 1,000 each with a base Issue size of Rs 500 crore with an option to retain any oversubscription up to Rs 500 crore, aggregating up to Rs 1,000 crores, which is within the shelf limit of Rs 5000 crore (“Tranche I Issue”), the company said in a statement.

The Tranche I Issue opened on Tuesday, April 25, 2023, and closes on Tuesday, May 9, 2023, with an option of early closure in compliance with SEBI NCS Regulations.

The NCDs are proposed to be listed on BSE and NSE stock exchanges. NSE will be the designated stock exchange for the Tranche I Issue. The NCDs have been rated “IND AA+/Stable” by India Ratings & Research Private Limited and “[ICRA]AA+ (Stable)” by ICRA Limited, according to the statement.

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A.K.Capital Services Limited is the Sole Lead Manager to the Issue. IDBI Trusteeship Services Limited is the Debenture Trustee to the Issue and KFin Technologies Limited is the Registrar to the Tranche I Issue.

Returns, Tenor and Minimum Amount

The Tranche I Issue offers various series of NCDs for subscription with coupon rates ranging from 8.25% per annum to 8.40% per annum. The minimum application size would be Rs 10,000 (i.e., 10 NCDs) and thereafter in multiples of Rs 1,000 (i.e. 1 NCD) thereof.

The NCDs under the Tranche I Issue are being offered with maturity/tenor options of 22 months, 37 months and 60 months with annual and cumulative payments options across series I, II, III, IV, V and VI.

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“Effective yield (per annum) for the NCD holders in all categories of Investors ranges from 8.25% per annum to 8.40% per annum,” the company said.

“Interest payment modes for the NCDs is through various modes selected by the investors. Amount on Redemption per debenture on maturity for the NCD holders in all Categories of Investors under the cumulative coupon payment option ranges from Rs 1,156.64 to Rs 1,497.40 per NCD across various tenures,” it added.