IFCI to raise Rs 2,000 crore through bonds this fiscal

Tags: bonds, IFCI, News
State-owned term lender IFCI plans to raise Rs 2,000 crore from bonds during the current fiscal to fund business expansion.

"We have taken board approval for a public issue of taxable, non-convertible bonds worth Rs 2,000 crore," IFCI Managing Director Malay Mukherjee said.

The fund raised will help in financing business growth, he said.

He also said the company intends to disinvest its entire stake in IFCI Financial Services Ltd (I-FIN) during the current fiscal.

IFCI holds about 94 per cent stake in I-FIN. It has appointed a consultant for selling its stake.

I-FIN is primarily involved in stock broking, investment banking, mutual fund distribution, insurance products and distribution, among other things.

The lender is also looking to rope in a strategic partner for another subsidiary, IFCI Factors Ltd, he said.

The company plans to sell 25-26 per cent stake so that the majority stake remains with IFCI, he said, adding the strategic sale would help IFCI unlock its investments.

Currently, the company holds 100 per cent stake in IFCI Factors Ltd.

Factoring business is a type of financial service wherein a firm sells its accounts receivable to a factoring company, which pay discounted value to seller against receivable receipts.

The company is also weighing the option of selling its non-performing assets to asset reconstruction company.

"We have identified 50 such accounts and would like to sell to ARC," he said, adding the aggregate value of such accounts would be Rs 2,000 crore.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The world is moving away from fast food like never before

    Despite spending $1.8 billion every year on worldwide advertising and promotion, McDonald’s sales are plummeting.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schoettli

It’s time for Japan to step out of its shell

The execution of a Japanese hostage by ISIS has sho­cked ...

Zehra Naqvi

The urge to tell stories

One wants to tell a story, like Scheherzade, in order ...

Bubbles Sabharwal

Truth about truth

The question to ponder is, “is it the truth because ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture