CHENNAI: Cholamandalam Investment and Finance Company Ltd has reported a 28.2 percent rise in its net profits for the April-June 2023 quarter at Rs 726 crore, the company said on Wednesday.

The financial services arm of the diversified conglomerate Murugappa Group reported a profit after tax at Rs 566 crore during the corresponding period of last year.

In a statement, the company said the Board of Directors, subject to the approval of shareholders, has approved a proposal for Capital raising by way of qualified institutional placements (equity issuance and or compulsory convertible securities) at a price to be determined under SEBI, (Issue of Capital and Disclosure Requirements) Regulations, 2018. “We are targeting to raise Rs 4,000 crore by way of these instruments, subject to necessary approvals,” the company said.

Total income during the quarter under review surged by 49 percent to Rs 4,134 crore from Rs 2,771 crore registered in the same period of last year.

The aggregate disbursements made during the quarter grew by 50 percent to Rs 20,015 crore from Rs 13,329 crore recorded in the corresponding period of last year. The capital adequacy ratio of the company as on June 30, 2023, was at 17.44 percent as against the regulatory requirement of 15 percent. Tier I capital was at 15.14 percent and Tier II capital was at 2.30 percent, the company said.