Future Capital Holdings has rallied 12% to Rs 281 on reports that the company is aiming at becoming a Rs 8,500 crore non-banking finance company giant.

The board of directors has approved the appointment of Mr V Vaidyanathan as the Vice Chairman & Managing Director of the company with effect from August 10, 2010. Vaidyanathan is credited with launching many retail initiatives of ICICI Bank.

According to report, the company will set up its consumer finance book and expects its balance sheet to grow to Rs 6,000 crore in two years. The company is planning to enter the mutual fund business through Future Finance and will be expanding its pan-India footprint by adding 40 boutique retail finance stores in the next few months.

Meanwhile, the board also approved the issue of ten million warrants on a preferential basis to two of its promoters, Mr Kishore Biyani, Chairman & Promoter and Mr. V. Vaidyanathan, at a price of Rs 237 per warrant with an option to acquire an equal number of equity shares within a period of 18 months.

The stock of Future Capital Holdings opened at Rs 253 and hit a high of Rs 289 on the BSE. The counter has seen hectic activity, with 1.90 million shares changing hands as against a daily average of 230,000 shares in the past two weeks.