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Morgan Stanley buys minor stake in Cholamandalam Investment

Picks up 1.5% stake worth Rs 40 crore from Copthall Mauritius Investment

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BS Reporter Chennai
Last Updated : Jan 20 2013 | 4:33 AM IST

Morgan Stanley has bought shares worth Rs 40.39 crore in Murugappa Group's NBFC Cholamandalam Investment and Finance Company.

According to BSE data, Morgan Stanley Asia (Singapore) Private Ltd has bought 20,19,915 shares that were sold by Copthall Mauritius Investment Ltd through a bulk deal transaction on BSE. The shares represent 1.52% stake in the NBFC.

The shares were bought at a price of Rs 200 a share amounting to Rs 40.39 crore, according to the BSE data.

The other major stakeholders in the company include International Finance Corporation (8.93%), Creador 1 LLC (5%) and Amansa Investments (3.16%) among others. In February this year, Multiples PE and Creador Capital invested Rs 212 crore in the company.

Cholamandalam Investment was started as Cholamandalam DBS Finance Ltd, a JV between Murugappa Group and DBS Bank. In April 2010, after Murugappa group bought DBS Bank's 37.48% stake in the company for Rs 376 crore through its group companies -- Tube Investments of India Ltd. and New Ambadi Estates Pvt Ltd -- the name was changed to Cholamandalam Investment & Finance Company.

The company has reported a 46 per cent growth in the topline at Rs 1,784 crore. The NBFC recorded better-than-industry growth rate with its customer focussed market approach -– both in terms of increased product portfolio and reach in in tier-2 and tier-3 centres.

Cholamandalam Investment is Murugappa Group's financial services arm with 342 branches across India. Overall, total assets under management rose by 40% year-on-year to Rs 14,643 crore.

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First Published: Jul 25 2012 | 5:54 PM IST

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