DE Shaw may bid for 26% stake in IFCI

DE Shaw, one of the largest global hedge funds, is likely to bid for a 26 per cent stake in IFCI, the country's oldest term lending institution.

IFCI has invited expression of interest (EoI) from domestic and overseas investors for selling a stake. The last date for expressing interest is September 14.

New York-based D E Shaw, which made an entry into India a few months ago, manages over $30 billion worth of funds.

The company has already undertaken three major deals which include investing $400 million in DLF SEZ, taking a stake in one of the country's largest animation software company Crest Communications and also in Dainik Jagaran, a media group.

Besides Shaw, Reliance ADAG, Citigroup and Blackstone may expressing interest for buying the IFCI stake.

When contacted, both D E Shaw and Reliance ADAG spokespersons declined to comment.

Post-September 14, IFCI will shortlist qualified investors and issue a request for proposal to the selected companies. The strategic investor induction process is likely to be over by January 2008.

To be eligible, an investor must have at least five years' experience in financial services and an average asset portfolio of Rs 8,000 crore in the last three years.

They must have to fulfill any of these criteria "� an asset book of at least Rs 10,000 crore in immediate last financial year or net worth of Rs 4,000 crore.

IFCI has fully provided against non-performing assets (NPAs) of Rs 6,690 crore as on March 31. The financial institution, which also has a NBFC licence, will focus on recovery of NPAs that will add to its profits.

The company has net loan assets of Rs 7,068 crore as of March this year.