The Hindu Business Line : Cholamandalam Investment offers 1:2 rights issue

CHOLAMANDALAM Investment and Finance Corporation Ltd is offering up to 1.26 crore equity shares on a right basis to existing shareholders in the ratio of one share for every two held. The shares, priced at Rs 10 each, are being offered at a premium of Rs 45.

The total size of the issue is Rs 69.57 crore and March 25 would be taken as the record date for the issue, according to the offer document published by Securities and Exchange Board of India. According to the offer document, the cost per share of shareholdings of the promoters is estimated at Rs 42.47 and the book-value of the equity shares as on September 30, 2003 is Rs 95.98 per share.

The company has low liquidity, as the trading volume of the shares is very low as compared to the total number of subscribed shares. The traded volume for the 12-month period ended February 29, 2004 is 53.3 lakh shares against the total equity of 2.52 crores of shares, stated the document.The issue closes on May 3 and the last date for request of split forms has been specified as April 16. ICICI Securities is the lead manager to the issue and Karvy is the registrar.