Murugappa Group-backed Cholamandalam Investment and Finance Company is likely to float a qualified institutional placement (QIP) offer of Rs 2,000 crore, CNBC TV-18 reported on September 12, citing sources.
The base price for the QIP of seen at around Rs 1,140 per share, the persons privy to the development told the news channel. The offer is likely to be floated this week, they added.
The development comes over a month after the company's board of directors, in a meeting held on August 1, gave their nod to raise Rs 4,000 crore via the QIP route in one or more tranches.
The NBFC has shortlisted three investment banks as advisors to raise the amount, Moneycontrol reported on August 5, citing sources. "Depending on market conditions, the proposed QIP is likely to be launched in September. That's the plan for now. Investment banks Kotak Mahindra Capital, IIFL Capital and HSBC Securities have been taken on board and work has begun," one of the sources had said.
"There is a lot of optimism in the NBFC sector currently and most stocks have performed well. A lot of NBFC IPOs are also in the works. Cholamandalam Investment is looking to scale up. These are early days and the QIP may be launched in September or early October," another person cited above had told Moneycontrol.
In the past, Cholamandalam Investment has raised Rs 1,200 crore -- Rs 900 crore through QIP and Rs 300 crore through preferential issue to the parent -- during the last quarter of fiscal 2020.
In the trading session on September 12, Cholamandalam Investment's shares traded in the red. At closing bell, the scrip was valued at Rs 1,148.30 on the BSE, which was 3.07 percent lower as against the previous day's close.
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