IFCI hopes to sell 26% stake in two-and-a-half months
IFCI on Monday said it will start inviting financial bids within a week and expects to complete the process of 26 per cent stake sale within two-and-a-half months period subject to regulatory and other approvals.
By PTI |
NEW DELHI: Country's oldest financial institution, IFCI on Monday said it will start inviting financial bids within a week and expects to complete the process of 26 per cent stake sale within two-and-a-half months period subject to regulatory and other approvals.
"We will float request for proposal (RFP) within a week and expect to receive financial bids in two months' time. We expect to finalise strategic investor in two-and-a-half months from outside," IFCI CEO and MD Atul Kumar Rai told reporters after the board meeting.
The company also gave options to thirty bank and financial institutions to convert less than 50 per cent of their Rs 1479-crore zero coupon debentures into equity and said remaining part of debt will be given interest rate that is available on 10-year government security papers. These debentures currently do not yield any coupon rate and are convertible only in 2021-22.
Rai claimed that this move of giving options to 30 banks and financial institutions will not hamper the process of stake sale as suitors had already been told that they would get 26 per cent post-diluted equity.
IFCI had short-listed eight entities out of 10 which had applied for Expression of Interest (EoI) while two entities - New Bridge Capital of US and Kotak Mahindra Bank opted out of race.
GE Corporation, Industrial Development Financial Company Ltd, Cargill Financial Services Corporation, Natixis, the Blackstone Group and three consortiums - Sterlite Industries (India) Ltd, Morgan Stanley and Co Consortium, WL Ross and Co LLC, GS Capital Partners (VI) Fund, Standard Chartered Bank and HDFC, Shinsei Bank Ltd, PNB and JC Flower and CO LLC are also in the race.
"We will float request for proposal (RFP) within a week and expect to receive financial bids in two months' time. We expect to finalise strategic investor in two-and-a-half months from outside," IFCI CEO and MD Atul Kumar Rai told reporters after the board meeting.
The company also gave options to thirty bank and financial institutions to convert less than 50 per cent of their Rs 1479-crore zero coupon debentures into equity and said remaining part of debt will be given interest rate that is available on 10-year government security papers. These debentures currently do not yield any coupon rate and are convertible only in 2021-22.
Rai claimed that this move of giving options to 30 banks and financial institutions will not hamper the process of stake sale as suitors had already been told that they would get 26 per cent post-diluted equity.
IFCI had short-listed eight entities out of 10 which had applied for Expression of Interest (EoI) while two entities - New Bridge Capital of US and Kotak Mahindra Bank opted out of race.
GE Corporation, Industrial Development Financial Company Ltd, Cargill Financial Services Corporation, Natixis, the Blackstone Group and three consortiums - Sterlite Industries (India) Ltd, Morgan Stanley and Co Consortium, WL Ross and Co LLC, GS Capital Partners (VI) Fund, Standard Chartered Bank and HDFC, Shinsei Bank Ltd, PNB and JC Flower and CO LLC are also in the race.
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