IDFC meet to discuss public issue

The board of Infrastructure Development Finance Company (IDFC), which will meet in Chennai tomorrow, is likely to discuss the institution's plans to come out with an initial public offering (IPO).

IDFC's board of directors, which met in April, had then thought it wiser to put the IPO plan on hold till a proper valuation exercise has been carried out by investment bankers. IDFC's book value currently stands at Rs 17.

The IPO would give some shareholders an exit option, and at the same time the listing of the shares would give shareholders a fair valuation of their investment.

According to the original shareholder agreement, the IPO was to be done five years back, and subsequently a two-year grace period was given which expires in 2005.

Meanwhile, IDFC is also on the prowl looking for a new head since Nasser Munjee put in his papers in April.

The four member committee chaired by American International Group (AIG) country-head Sunil Mehta have been given a three-month time frame to identify the new CEO. The institution is using head hunters and looking at candidates in the banking and financial sector.