Capital Gears Up—Cholamandalam Eyes NCD Route for Lending Surge

Cholamandalam Investment and Finance Company Ltd has announced that its Board will meet shortly to consider a proposal for issuing non-convertible debentures (NCDs). The move is part of the company’s broader strategy to diversify funding sources and support its lending operations across vehicle finance, SME loans, and consumer credit.

 

Key Highlights:

 

- Proposed issuance includes secured, redeemable, listed NCDs via private placement

 

- Instruments may be issued in one or more tranches, depending on market conditions

 

- Funds raised will be used for onward lending, refinancing existing debt, and general corporate purposes

 

- The company maintains a strong credit rating of AA+ from ICRA and India Ratings

 

- Cholamandalam continues to expand its footprint across semi-urban and rural India with over 1,200 branches

 

Strategic Outlook:

 

The NCD plan reflects Cholamandalam’s commitment to financial agility and sustained growth in India’s evolving credit landscape.

 

Sources: Financial Express, IndiaBonds, HDFC Securities, Cholamandalam Exchange Filings.