First Leasing Co

First Leasing Co

First Leasing Company of India (FLCL) was incorporated in Sep.'73 and it is the first public limited leasing company to commence operations in India. It commenced business in Nov.'73 in Madras. The company was jointly promoted by A C Muthiah and Farouk Irani. A C Muthiah is the chairman and Farouk Irani is the managing director of the company. It came out with its first public issue in 1983.The company is engaged in the business of leasing hire-purchase and consumer-finance transactions. These activities provide an alternative source of finance for the industry consumers and traders. With the growing expansion of industrial activity the demand for capital goods is increasing sharply. Investment support from banks and financial institutions is inadequate to meet this demand. The leasing and hire-purchase industry helps bridge the gap between the need and availability of capital.In Jan.'92 FLCL came out with a rights issue of 3.50 lac 17% PCDs of Rs 200 aggregating Rs 7 cr. The proceeds of the issue were utilised to expand its leasing activities.The Commonwealth Development Corporation (CDC) a British Government Department has taken a 10% stake in FLCL by investing Rs 11.50 cr. The company is preparing a database of all the leased assets in the country which will also give details of locations and the names of the suppliers and the brokers involved in the deal.The company set a precedent for the leasing industry by completing a Rs.75 crore lease agreement with Indian Railways through Indian Railway Finance Corporation.