The Hindu Business Line : 2 Cholamandalam Fin subsidiaries to merge

TWO wholly-owned subsidiaries of Cholamandalam Investment and Finance Company — Cholamandalam Securities and Cholamandalam Distribution Services — are to be merged into one entity.

Cholamandalam Distribution Services sells a range of financial products such as mutual funds, fixed deposits, life insurance, shares and debentures and home loans— both in-house and third party — to corporate, high net-worth and retail clients. The company operates from more than 20 cities. The company mobilises over Rs 1,000-crore investments in a year.

Cholamandalam Securities Ltd is a securities brokerage firm offering stock broking and equity research services to institutional investors, including many of the largest mutual funds in India, and to select individual clients. The company is a member of the Bombay Stock Exchange and the National Stock Exchange. It is also a depository participant with NSDL. "The company processes over a million transactions per day for 250,000 customers and shareholders," according to the company's Web site.Mr M. Anandan, Managing Director, Cholamandalam Investment and Finance Company, told Business Line that the combined turnover of the two companies would be around Rs 20 crore and combined profits around Rs 6 crore.

Meanwhile, Cholamandalam Investment is awaiting FIPB nod for getting DBS Bank of Singapore into the company as an equal partner. Although foreign direct investment into non-banking finance companies is "automatic", the formality of getting the automatic approval has to be gone through.

He said the current year's loan disbursements by the company would be about Rs 1,400 crore.

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