Monday 13 August 2007

IFCI to raise Rs 1500 Crore

IFCI to raise Rs 1500 Cr via sale of 26% stake; to wipe out Rs 850 Cr accumulated losses

IFCI is to invite domestic & foreign investors for a minimum 26% strategic stake sale. The last date of submitting EoI is by 5 pm on Sep 14. They are to follow 2 stage process for selection of investors. The selected applicants post EoI will be invited for pre-qualification bid and shortlisted candidates will be announced by Sep 25. The pre-qualified investors need to submit sealed financial bids.

The due date for proposal submission & RFP documents is by end November. The allotment & subscription to the new investors will be by end Jan 2008. The investor would need to qualify either of the 3 eligibility criteria.

- Investor Needs To Have An Asset Book Of Rs 10,000 cr
- Investor Needs To Have A Networth Of More Than Rs 4000 cr
- Average Asset Under Fund Should Be More Than Rs 10000 cr

The consortium investors needs to have a lead investor & hold atleast 26% stake. The total number of members in Consortium will not be more than 4. The investor would need to hold IFCI for atleast 3 years from transaction date. IFCI board will make preferrential allotment to the selected investor. Bidder would need to make open offer for 20% post preferrential issue.

IFCI says that the company is eyeing Rs 1,500 crore via 26% stake sale. The company is targeting at least 20% rise in net profit in FY08. The company hopes to wipe out Rs 850 crore accumulated losses in FY08. For this, the company is seeking the rating from credit rating companies early FY09.