Cholamandalam Investment and Finance Co Ltd is planning to raise approximately Rs 2,000 crore through a qualified institutional placement (QIP). The QIP is expected to open on September 28, offering an option to upsize based on the demand and response from investors, CNBC TV reported on September 28.
Floor price for QIP likely to be in the range of Rs 1,160-1,180 a share which is a discount of 4-6 percent from the current market price, according to the business television report. It may raise another Rs 2,000 crore via compulsory convertible debentures.
On August 1, the board of Cholamandalam Investment and Finance had given its approval for raising Rs 4,000 crore.
Cholamandalam Finance earlier raised Rs 1,200 crore in the March quarter of FY2020. This involved a combination of a Rs 900 crore QIP and a Rs 300 crore preferential issue, with shares priced at Rs 320 each in the QIP, attracting investors like the Government of Singapore and more.
At 2.14am, the stock was trading at Rs 1225 on BSE, up 2.3 percent from its previous close. In intraday it hit a record high of Rs 1249 a share. So far this year it surged over 70 percent.