Singapore based Temasek Holdings is looking at diluting 10 per cent stake in Fullerton India Credit Company, a wholly owned subsidiary of Fullerton Financial Holdings, to raise about Rs 1000 crore via an initial public offer (IPO).

Fullerton India gives out small ticket loans to growing entrepreneurs but the business needs big funding and that may push the Singapore based fund to consider an IPO.

Fullerton’s India head, an ex Citi banker, G S Sundararajan, while non-committal on the IPO agrees to such proposal in principle.

Sources suggest Temasek could use this fund to meet its acquisition plans in the auto and consumer durables financing space.

Fullerton, which is one of the largest non-banking financial companies (NBFC) in the country is looking to grow its business into semi-urban and rural areas.

However, sources close to the development point out that Temasek may take longer for an IPO in India given the regulators tough stance on non banking financial outfits at large and especially on the disclosure norms.