Cholamandalam Investment and Finance Co Ltd has picked four banks including Citigroup for a share sale to institutional investors to raise up to $56 million, two sources with direct knowledge of the matter said.

The Chennai-based non-bank finance company plans to launch the share sale within a few weeks, depending on market conditions, said the sources, who declined to be named as they were not authorised to speak to the media.

JM Financial Services, Kotak Mahindra Capital, a division of Kotak Mahindra Bank, and Axis Capital, a unit of Axis Bank are the brokers handling the transaction, the sources said.

Officials at Cholamandalam, JM Financial, Kotak, Axis and Citi were not immediately available for comment.

In December, Cholamandalam said its board had approved raising up to 3 billion rupees in capital through private placements.