Capri Global Capital plans to raise Rs 5 billion via non-convertible debenture and Rs 3 billion via commercial paper. The board of Capri Global met on Saturday and granted approval for raising funds which will be deployed for lending to the micro, small and medium enterprises, downstream investments, new financial services and for general corporate purposes.

Rajesh Sharma, director, Capri Global Capital said, "Recent cuts in interest rates by RBI has lead to moderation in bond yields , which is expected to benefit non-banking financial companies (NBFCs) by way of 100 basis point cut in cost of borrowings. Data emancipating from RBI indicates that NBFCs are able to attract record amounts from bank in their commercial paper and NCD issue."

While credit off-take has been subdued, banks lending to NBFCs in the month of July hit a two-year high of over 15.5% year-on-year, while bank lending to the corporate grew at less than 1% for the fourth successive month, Sharma said.

As on March 31, 2016 Capri Global has a total debt of Rs 1.13 billion in its books while the net-worth is around Rs 10.86 billion including equity of Rs 350 million. With a total loan disbursement of close to Rs 7 billion in 2015-16 out of the total loan book of over Rs 11 billion, the company's subsidiary has recently received license from RBI for housing finance company and would be commencing business shortly.

Shares of the company declined Rs 16.6, or 4.29%, to settle  at  Rs 369.95.  The total volume of shares traded  was  8,631 at  the BSE (Monday).