Cholamandalam Investment and Finance Company allots Compulsorily Convertible Preference Shares

Cholamandalam Investment and Finance Company Ltd has completed all the formalities with regard to the issue of CCPS including the receipt of funds and the Issue Committee of the Board has on September 03, 2014 approved the allotment of 5,00,00,000 CCPS of Rs. 100 each aggregating to Rs. 500,00,00,000/- (Rupees Five hundred crores only) to M/s. Dynasty Acquisition (FDI) Ltd.

As per the terms of issue, the CCPS will be converted into 1,22,85,012 equity shares of Rs. 10/- each at a conversion price of Rs. 407/- (including a premium of Rs. 397/-) per equity share not later than 12 months from the date of allotment. CCPS will bear a dividend of 1% per annum payable from the date of allotment till the date of conversion into equity shares.

The company had earlier announced on August 28, 2014, regarding declaration of postal ballot and voting results pursuant to Clause 35A of the listing agreement on the approval of the shareholders for issue of 5,00,00,000 1% compulsorily convertible preference shares (CCPS) of Rs. 100/- each aggregating to Rs. 500 crores on a preferential basis, in accordance with the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009 as amended from time to time.

Shares of Cholamandalam Investment and Finance Company Ltd was last trading in BSE at Rs.410.45 as compared to the previous close of Rs. 412.8. The total number of shares traded during the day was 18223 in over 288 trades.

The stock hit an intraday high of Rs. 416.95 and intraday low of 408.35. The net turnover during the day was Rs. 7503936.

Source : Equity Bulls

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