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Coupon Rate Upto 8.40% p.a.^# Effective Yield Up to 8.40% p.a.^##

Cholamandalam Investment and Finance Company Limited (CIFCL), a leading financial services provider in India, has announced its maiden public issue of secured, rated, listed redeemable non-convertible debentures of the face value of Rs. 1,000 each (“NCDs”) with a base Issue size of Rs. 500 crores with an option to retain any oversubscription up to Rs 500 crores, aggregating up to Rs. 1,000 crores, which is within the shelf  limit of Rs 5000 crore  (“Tranche I Issue”). The Tranche I Issue opens 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 (“NSE” together with BSE, the “Stock Exchanges”) NSE shall 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.

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 ? 10,000 (i.e., 10 NCDs) and thereafter in multiples of ? 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. Effective yield (per annum) for the NCD holders in all categories of Investors ranges from 8.25% per annum to 8.40% per annum. Interest payment modes for the NCDs is through various modes selected by the investors. Amount on Redemption on maturity for the NCD holders in all Categories of Investors under the cumulative coupon payment option ranges from ? 1,156.64to ? 1,497.40 per NCD across various tenures.

As of December 31,2022 the company had 22.70 Lakh Active Customers across India being served by 1,166 branches across 29 states and union territories in India. It has a geographically diversified exposure across North, South, East and West regions, 80% of its branches are located in Tier III, Tier IV, Tier V and Tier VI towns

Its principal businesses include vehicle finance, loan against property and home loans, additionally it also provides financing to SMEs, Consumer and Small Enterprises. Recently it has forayed into providing secured business and personal loans. CIFCL’s Total AUM as on Dec 31, 2022 stood at Rs 95,467 crs.

Out of the Net proceeds of the Tranche I Issue, after meeting the expenditures of and related to the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and up to 25% for general corporate purposes.

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.

Please note that the Basis of Allotment under the Issue will be on the basis of date of upload of each application into the electronic book of the Stock Exchanges in accordance with the SEBI Operational Circular. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on proportionate basis. For further details refer section titled “Issue Procedure” on page 55 of the Tranche I Prospectus dated April 19, 2023.