Chola mulls listing of all its debentures

"We have a good track record and even for the most recent securitisation deal ICICI and HDFC competed along with Citigroup. The deal securitisation deal was a mix of our commercial vehicles and cars portfolio," Anandan said.

CIFCL would be mopping up close to Rs 500 crore for meeting its funding requirements next year, Anandan said. "It would be through a mix of debt, securitisation, deposits and a rights issue," he said.

CIFCL, Anandan said would be targeting a balance sheet growth of 25 per cent per annum on a base of Rs 1,600 crore.

In line with its vision of wanting to become a pan-India player CIFCL is also slated to start focussing on its brand new operations in the Eastern region.

"We are moving in a systematic manner to expand our presence. Next year we will be activating our eastern region and will be operating out of Kolkata. The whole idea being able to cross sell and up sell across categories of our financial offerings to customers," Anandan said.

1:2 rights issue

The board of directors of CIFCL approved a 1:2 rights issue. The rights issue will be issued at a premium of Rs 45. The company expects to mop up a minimum of Rs 70 crore through the rights issue.

Earlier today the shareholders of the company approved the increase in authorised capital of the company from Rs 70 crore to Rs 160 crore. The enhanced authorised capital will consist of Rs 100 crore in equity capital and Rs 60 crore of preference capital.

"As a NBFC w have to maintain a capital adequacy ratio of 12 per cent. We are proactively strengthening the capital base to support the future growth of the company. The capital adequacy ratio is in the region of 13.5 per cent now and we expect it to be around 14.5 per cent next year," Anandan said.

"A strong capital base will also enable the company to raise more debt funds at lower costs," he said.