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

Tags: 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.

EDITORIAL OF THE DAY

  • Govt must resist the temptation of milking PSUs to finance development expenses

    Hoarding cash in huge amounts should perhaps be made a punishable offence in India.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: SRK’s ALPHABET SOUP

On Saturday, the Enforcement Directorate sent a show cause notice ...

Ananda Majumdar

<b>Ruminations:</b> WALKING ON A THIN EDGE

A social media post doing the rounds says, with some ...

Rajgopal Nidamboor

The archetypal core of qualified silence

We are all cloaked by noisy distress, and not silence, ...