Cholamandalam Investment and Finance Feb ’32
How this yield compares
About this bond
Cholamandalam Investment and Finance Feb ’32 is a corporate bond issued by a company to raise debt from investors, currently offering a yield to maturity (YTM) of 8.7%. It pays a coupon of 8.66% and matures on 22 Feb 2032, a remaining tenure of about 5.6 yr. It is rated AA+, a very high credit-safety grade. BondScanner lists this bond with a minimum investment of ₹1.0L.
Its 8.7% yield is solid for its risk band, toward the lower end at 150th of 175 Corporate bonds. That trails the Corporate median of 10.75% by 2.05 points, so the trade-off is lower yield for whatever else this issuer offers. A comparable SBI fixed deposit yields about 6.55%, so this bond adds roughly 2.15 points for taking on credit risk. Its medium 5.6 yr horizon balances rate lock-in against flexibility. Paired with its very high safety (AA+) rating, that leans toward the safety-first end. Compare it against similar bonds on RightBonds before investing.
Investors comparing this bond often also look at Hinduja Leyland (INE146O08415) at 9.05%, CAPRI GLOBAL CAPITAL (INE180C07171) at 9% and Piramal Finance (INE516Y07444) at 9%.
Bond details
What you keep after tax
Interest on a listed corporate bond is added to your income and taxed at your slab, so the 8.7% headline is a pre-tax number. Here is the same bond seen from each slab, on ₹1,00,000 held for the remaining 5.6 yr.
| Your tax slab | Post-tax yield | ₹1,00,000 becomes |
|---|---|---|
| No tax (income under the exemption limit) | 8.70% | ₹1,59,036 |
| 5% slab | 8.26% | ₹1,55,529 |
| 20% slab | 6.96% | ₹1,45,385 |
| 30% slab | 6.09% | ₹1,38,929 |
At a 8.66% coupon, ₹1,00,000 of face value pays about ₹8,660 of interest a year, under the ₹10,000 Section 193 threshold, so no TDS is withheld.
Slab rates only - surcharge and cess are not included, and the figures assume you hold to maturity. Sold on the exchange after 12 months instead, the gain is taxed as long-term capital gains at 12.5%. Not tax advice.
Against a fixed deposit, in rupees
Same ₹1,00,000, same 5.6 years, one in this bond and one in a tenure-matched SBI fixed deposit at 6.55%.
Bond figure compounds the yield annually; the FD compounds quarterly, as a cumulative bank FD does. Both are pre-tax and assume the bond is held to maturity and the issuer pays in full - the AA+ credit risk is the reason for the gap.
When you get paid
Interest lands once a year, in Feb, with about 6 payments still to come before 22 Feb 2032, each at the 8.66% coupon rate.
Payment months come from the issuer's schedule. Exact dates within the month, and the amount per payment, depend on the face value of the units you buy - check the term sheet on BondScanner before investing.