By Bandula Sirimanna
A leading US fund is to invest in Ideal Finance Ltd (IFL), a subsidiary of Ideal Group, to propel the company’s growth through foreign equity, head of the company said.
Nalin Welgama, Chairman of Ideal Finance told the Business Times that negotiations are underway with the US fund to get a massive financial commitment. He declined to name the US firm.
The company was launched last year with a capital of Rs.650 million and is now functioning at Union place Colombo, he disclosed. It will be listed in the Colombo Stock Exchange in March next year, he said adding that they will not give priority to deposit taking and savings but will mainly concentrate on micro financing, hire purchase, leasing, loans, and pawning.
The current deposit portfolio is around Rs. 50 million, he revealed.
Japan’s Nishiya Mokkou Company Ltd is the strategic partner of the company and with them Ideal Finance will strive to promote aggressive investment, lending and savings, which in turn will cascade to financial buoyancy, Mr. Welgama said.
India’s Mahindra and Mahindra group, the Indian partner of Ideal Motors part of the Ideal Group, is also planning to increase investments here initially in tourism and financial services, he disclosed.
There are plans to grow the IFL footprint through nine branches based in key regions including Colombo, Kurunegala, Matara and Anuradhapura.