CFSL plan to raise funds for infrastructure projects, Startup ventures

KOCHI: Cheraman Financial Services, which is set up by Kerala government and some private NRI investors from the Gulf, today said it proposes to fund various infrastructure projects in Kerala and also handhold start up entrepreneurs.

The company, registered with RBI as Non deposit taking NBFC and seeks to promote interest free financing model in India on the lines of Islamic banking, has a Rs 1000 crore authorised capital of which Kerala State Industrial Development Corporation stake is 11 per cent, Industries minister P K Kunhalikutty and CFSL Chairman P Mohamad Ali, Managing Director of Galfar Group, told a joint press meet here while announcing the launch of the company.

The company was formerly known as Al Barakah Financial Services.

The company, which has received certificate of registration from RBI to function as a NBFC, intends to introduce leasing and equity finance as its products. These products are based on the economic princples of Shariah and are also in compliance with the Indian regulatory requirements, they said.

Besides CFSL, the group's other entities include Cheraman Fund, SEBI registered Alternative Investment Fund, Cheraman Funds Management Ltd and Cheraman Infrastructure(P) Ltd.

The Cheraman fund plans to carry out alterantive investment fund activities and the first scheme of the fund has a Rs 250 crore corpus, Ali said, adding initially Rs 50 crore would be raised.

The chairman said Rs 1,000 crore authorised capital has already been raised and "as we find projects, we can invest and raise more funds."

"One of our missions is to provide new entrepreneurs or start up companies with the seed capital', he said, adding the company was hopeful of raising funds for various metro, railway or any other development projects.

Kunhalikutty said the previous CPI(M) led LDF government had envisaged the project, but there were initial hiccups. There was lot of potential for the company in various areas, especially for start up entrepreneurs for whom banks hesitate to fund projects.

While KSIDC will have 11 per cent equity stake, the other investors will have only stake only upto nine per cent or lesser.