Forty two year old leasing specialist Industrial Finance Ltd is coming out with a rights issue to up capital. Forty two year old leasing specialist Industrial Finance Ltd is coming out with a rights issue to up capital. The privately held company’s core capital stands at Rs. 40 mn – just Rs. 10 mn short of Central Bank’s minimum capital guidelines.
“We will also go for a credit rating later this year, which will help us raise funds to fund our leasing base,” says M F Fuard, Director/General Manager.
Throughout its four-decades of doing business, Industrial Finance has fed its leasing business through customer deposits. The leasing portfolio, which stands at Rs. 300 mn, is largely exposed to commercial vehicles.
“We don’t do buses because of its risky nature but we do a bit of three-wheelers as well,” says Fuard.
The deposit base has grown from Rs. 17 mn in 1994, Rs. 114 mn in 2003 to Rs. 144 mn.
Fuard says deposits products are currently sold between 10 percent (for 12 months) to 14 percent (for four years).
The firm, which has interest in leasing, hire purchase, deposits, loans