Murugappa group's Cholamandalam Investment raises Rs.3 bn

City based non-banking finance company (NBFC) Cholamandalam Investment and Finance Company Ltd (Chola Investment), part of the $4.4 billion Murugappa group, has raised Rs.3 billion through qualified institutional placement (QIP) route, said a senior group official.

Speaking to IANS, the group's director (finance) N.Srinivasan said: "We have raised Rs.3 billion successfully. The funds will be deployed for business operations and to meet the capital adequacy norms."

He said this is the first time the Murugappa group has raised funds through the QIP route.

The QIP was strategised and executed by Axis Capital.

Axis Capital in a statement issued Friday said: "The transaction was a tremendous success with exceptional interest evinced by quality long only global funds, private equity (PE) funds, domestic mutual funds and insurance companies.

"There was an overall demand of over 2.3 times the offer. The entire book was placed only with high quality foreign institutional investors, PE investors and domestic institutions."
Axis Capital garnered over 67 percent of the total allocation in a three banker deal, the statement added.

According to Srinivasan, the issue price of equity share with a face value of Rs.10 was Rs.285.