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| Chola Investment net up |
| BS Reporter / Chennai Feb 02, 2012, 00:06 IST |
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Cholamandalam Investment and Finance Company Ltd posted over five-fold rise in net profit for the quarter ended December 31, 2011, to Rs 40.56 crore compared with Rs 7.13 crore during the same period previous year. Income from operations stood at Rs 461.06 crore as against Rs 286.93 crore, an increase of 60.69 per cent.
The board of directors has approved issue of equity shares to investors on a preferential basis to raise Rs 212.08 crore. According to a senior company official, Creador Capital and Multiples Alternate Asset Management would invest around Rs 100 crore each in the company to hold five per cent shares each.
The money is expected to be raised by March, this year, subject to approval from shareholders, said Arulselvan, chief financial officer, Cholamandalam Investment and Finance Company. He added that with this, the company’s capital adequacy ratio would go up from around 15 per cent at present to slightly below 20 per cent and would be enough for around 18 months. The promoters' stake would come down from 69 per cent to 62 per cent, with the dilution.
The company, in the third quarter of the current fiscal, had raised Tier II capital of Rs 285 crore in the form of perpetual debt instruments and subordinated debt.
During the third quarter, it disbursed Rs 1,915 crore in vehicle finance as against Rs 1,158 crore in the same period last year. Aggregate disbursements for the quarter was Rs 2,283 crore, compared with Rs 1,473 crore, a growth of 55 per cent.
The board of directors also approved the appointment of N Srinivasan, director with the company, as vice chairman effective January 31.
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