IFC among new stakeholders in Cholamandalam Investment and Finance
Cholamandalam Investment and Finance Company has diluted a 15% in itself to investors including IFC, Amansa Investment, Acquarius Investment, Reliance Capital and India Capital Fund as part of its effort to raise INR250 crore ($56.56 million) for business expansion, India’s Business Standard reported.
Speaking to the newspaper, Cholamandalam's Managing Director Vellayan Subbiah said that, of its 15% divestment, 10% of the company has been purchased by IFC, which committed INR115 crore, and INR135 crore was invested by the remaining players.
He added that, by Q1 2012, the company may seek a further equity infusion, which could may materialize as a QIP, preferential allotment or rights. That capital will finance Cholamandalam's foray into agricultural financing, construction equipment and related industries, the report continued.
The company had previously raised INR450 crore when it divested a 5% stake through a QIP, and it may look to dilute another 5% stake in its next capital raise.
Cholamandalam has more than 200 branches across Indian with more than INR9,000 crore AUM. Incorporated in 1978 as the financial services arm of the Murugappa Group, the company currently operates as a financial services solution provider in the areas of general finance, business finance, home equity loans, stock broking and distribution of financial products to its customers.
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