The Hindu : Business : Cholamandalam DBS to raise subordinated debt

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Wednesday, Oct 25, 2006
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Cholamandalam DBS to raise subordinated debt

Corporate Reporter

CHENNAI: The directors of Cholamandalam DBS Finance, at a board meeting held on October 19, have approved raising of subordinated debt not exceeding 50 per cent of Tier I capital in one or more tranches on a private placement basis. According to Atul Pande, Managing Director, the company might look at other fund-raising options later.

The board also approved the appointment of A. Vellayan and R. Krishnamurthy as additional directors. Further, Mr. A Vellayan has been elected as Chairman of the company.

The board has also approved the resignation of M. A. Alagappan as a director.

Meanwhile, the company has posted a growth of 86 per cent in its disbursements to Rs. 557 crore in the three months ended September 30, 2006, from Rs. 300 crore in the same period in 2005.

Revenues increased to Rs. 78 crore from Rs. 65.36 crore and the profit before tax was Rs. 7.36 crore, as against Rs. 19.11 crore. Last year's profit and revenues included, Rs. 14.54 crore of a one time gain on sale of long term investments and profit adjusted for provision of Rs. 4.50 crore towards joint venture expenses.

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