Tata Capital to set up subsidiary for infra finance
Kolkata: Tata Capital, a subsidiary of Tata Sons, would set up a 100 percent subsidiary for providing infrastructure finance, a company official said.
"We will set up a 100 percent infrastructure finance subsidiary by March 2011," managing director of Tata Capital Praveen Kadle said Tuesday. Presently, infrastructure financing activity was being done out of a division of Tata Capital.
In its first year of operations, Tata Capital had disbursed Rs 4,000 crore towards infrastructure financing out of a total of Rs 11,000 crore.
Khadle said that the funds required for infrastructure financing would be raised in the right mix of external commercial borrowings and domestic debt.
Out of the Rs 11,000 crore disbursed, Rs 4,500 crore was towards commercial finance and Rs 2,500 crore towards retail finance.
The company had clocked a net profit of Rs 51 crore on a gross revenue of Rs 1,379 crore.
Tata Capital's capital base stood at Rs 2,200 crore.
Khadle said that the company would leverage the Tata brand to raise further capital from the market.
"We will be able to raise about Rs 3,000 crore further from the market," he said.