Cholamandalam DBS to raise Rs 300 cr via preference shares

Cholamandalam DBS said its founders including EID Parry, Coromandel Fertiliser Ltd and DBS Bank would subscribe to 10 million convertible shares, to raise Rs 300 crore.

The preference shares will be issued at Rs 100 each at a premium of Rs 200 and shall be convertible into equity within 18 months, the financial services firm said in a statement to the stock exchange.

The firm had said on Oct 24 it will raise an additional Rs 50 lakh.

Sabre Cap, Temasek eye DBS Chola

Rana Talwar’s Sabre Capital, backed by private equity giant Temasek, is in talks with Cholamandalam DBS Finance (CDFL) to take over the latter’s mutual fund company — DBS Cholamandalam Asset Management. The deal, advised by Kotak Mahindra, is likely to be around Rs 400 crore, said sources. A few other strategic investors are also believed to be in the fray.

The fund’s assets under management (AUM) had dropped from over Rs 5,000 crore in July 2007 to around Rs 3,829 crore in September. Sources said both partners — DBS and the Murugappa group — were not happy with their MF business, which has slipped in rankings over the past few months.

Sabre, along with Temasek, currently owns Lotus India Asset Management. Temasek-owned Alexandra Fund holds 42.8% in Lotus while Sabre holds 32.2%. The balance is held by employees and domestic shareholders.

Sources said if Sabre and Temasek succeed in the acquisition, they will merge the AMC with Lotus. As per the figures available for September 2007, Lotus has built up an AUM of Rs 6,385 crore. DBS Chola, meanwhile, has an AUM of only Rs 3,829 crore.

Read more in The Economic Times article.

DBS Chola to raise Rs 200 cr via rights issue

Financial services firm Cholamandalam DBS today said it will raise up to Rs 200 crore through a rights issue.The company's board of directors approved issue of 1.42 crore equity shares with detachable warrants in the ratio of three new shares for every eight held, Cholamandalam DBS informed the Bombay Stock Exchange (BSE).

The shares would be issued at Rs 140 each and one detachable warrant would be issued with every rights share allotted to the shareholders, it said.The maximum cap price on warrants to be converted into equity shares would be Rs 275 per share. The record date for the issue has been fixed as September 18.