IDFC to launch IPO by June

Infrastructure Development Finance Company (IDFC) is planning to hit the capital markets by June 2005 end to fund its capital requirements, and will shortly launch a second infrastructure development fund with a corpus of about Rs 1,300 crore.

"We are planning to launch an initial public offering depending on the market conditions by June which will include pro-rata dilution of the existing shareholders and have new investors on the board," IDFC CEO and managing director Rajeev Lall told reporters.

Rajeev Lall, however, did not divulge details about the size of the IPO but said "in the Indian scheme of things it will be a substantial offering."

Lall said the government, which has about 35% stake, would continue to be the single largest shareholder, though its stake would come down.

Under the IPO, which would be part primary and part secondary, there would be pro-rata sale of stake by existing shareholders while new investors would also pick up equity.

The company would launch the second infrastructure fund with a corpus of about Rs 1,300 crore and the amount would be raised in the next 8-10 months.

The fund will have maximum overseas participation and the company has committed bulk of its earlier Rs 850 crore India Development Fund to over five projects, Rajeev Lall said, adding, "We are in the pre-marketing stage and would soon launch the marketing for the second fund,".