Creador announces USD21.3 million investment in Cholamandalam

01.02.12 / Author:

Creador and Multiples have jointly announced today an investment of approximately USD 21.34 million each respectively in Cholamandalam Investment & Finance Company Limited (CIFCL), a leading non banking finance company (NBFC) in India for a 5% stake each.

Creador is a private equity firm focused on long-term investments in growth-oriented businesses in India, Indonesia and Malaysia. Multiples Alternate Asset Management is an investment advisory firm specializing in making growth investments in mid-sized Indian companies, management led buyouts and spin-offs of divisions from large Indian groups based in India.

CIFCL is majority owned by the Murugappa Group. It is a NBFC with 347 branches across India and with a market capitalization of USD 367 million, CIFCL is engaged in the provision of vehicle, home equity and business finance. CIFCL is listed on leading exchanges in India, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The company has assets under management (AUM) of over USD 2,280 million and nine-months ended profit before tax of USD 37.3 million (31st December 2011).

Both Creador and Multiples Asset Management believe that CIFCL, under the leadership of the Murugappa Group and a strong management team, is poised to scale new heights in retail and small business finance. Its business ethics and wide rural network are targeted at creating lasting value for the long term.

“We are delighted to have this opportunity to be associated with Cholamandalam, a company with an outstanding promoter group and corporate governance standards. We have been very impressed with the strategic focus and outstanding track record of profitable growth” said Brahmal Vasudevan, CEO of Creador.

“The financial services sector in an emerging economy like India offers huge growth potential. We believe that by investing in Cholamandalam we have picked a player that has the right elements to address this tremendous opportunity” said Renuka Ramnath, Founder, MD & CEO of Multiples Alternate Asset Management.

In response to these investments, S.Vellayan, CIFCL’s Managing Director said, “We are delighted to have both Creador and Multiples as investors in our Company. We are excited at the prospects of our business and look forward to utilizing the new capital in our business expansion programmes”.